Question 171759: If $1,500 is deposited in a savings account paying 5% compounded quarterly, how long will it take the accoun to increase to $2,000.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! If $1,500 is deposited in a savings account paying 5% compounded quarterly, how long will it take the account to increase to $2,000.
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A(t) = P(1+(r/n))^(nt
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quarterly means n=4
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2000 = 1500(1+(0.05/4))^(4t)
(4/3) = (1+0.0125)^(4t)
Take the log to get:
4tlog(1.0125) = log(4/3)
4t = 23.158
t = 5.789 years
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Cheers,
Stan H.
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