You can put this solution on YOUR website! how long would it take to double an investment of 1000 at 9 percent compounded quarterly?
.
Use:
A = P(1+i/n)^(nt)
where
A is amount after time t (2P)
P is the principal (P)
i is the interest per year (.09)
n is the times compounded during the year (4)
t is number of years (what we're looking for)
.
A = P(1+i/n)^(t/n)
2P = P(1+.09/4)^(4t)
2 = (1+.09/4)^(4t)
2 = (1.0225)^(4t) = 4t = t
7.79 years = t
