Question 864443: How long will it take $5000, invested at 7% interest compounded quarterly, to reach a value of $17,000? Answer by LinnW(1048) (Show Source):
You can put this solution on YOUR website! At 7% per year, the quarterly compounding amount is 0.07/4 = 0.0175
Set x = the number of quarters required to end up with $17,000
So 5000*(1.0175^x) = 17000
divide each side by 5000
1.0175^x = 17000/5000
1.0175^x = 3.4
Take the log of each side
log(1.0175^x) = log(3.4)
x*log(1.0175) = log(3.4)
divide each side by log(1.0175)
x =
x = approximately 70.540143
So 5000*(1.0175^70.540143) should be close to 17,000
So in just a little over 70 quarters or just over 17.5 years,
5000 becomes 17000
