Question 1193453: How long will it take for 74,500 to accumulate to 101,000 if the
interest rate is 10.5 % compounded quarterly?
Answer by ikleyn(52781)   (Show Source):
You can put this solution on YOUR website! .
How long will it take for 74,500 to accumulate to 101,000 if the
interest rate is 10.5 % compounded quarterly?
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For the amount of $74,500, compounded quarterly, the future value formula is
Future Value = 
where n is the number of quarters.
Therefore, an equation to find "n" is
101000 =
Divide both sides by 74500
 =  ,
or
1.355705 =  .
Take logarithm base 10 of both sides
log(1.355705) = n*log(1.02625)
and find "n" using your calculator
n =  = 11.745 quarters.
Finally, round this value 11.745 to the nearest greater integer 12,
in order for the bank was in position to make the last compounding.
ANSWER. 12 quarters, or 12/4 = 3 years.
Solved.
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To see many other similar (and different) solved problems, look into the lesson
- Problems on discretely compound accounts
in this site, and learn the subject from there.
After reading this lesson, you will tackle such problems on your own without asking for help from outside.
Also, you have this free of charge online textbook in ALGEBRA-I in this site
- ALGEBRA-I - YOUR ONLINE TEXTBOOK.
The referred lesson is the part of this online textbook under the topic "Logarithms".
Save the link to this online textbook together with its description
Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson
to your archive and use it when it is needed.
Happy learning (!)
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