Question 1119587: How long will it take a $1,700.00 investment to earn $350.00 in interest if it is invested at 10% compounded quarterly. Found 3 solutions by ankor@dixie-net.com, MathTherapy, Alan3354:Answer by ankor@dixie-net.com(22740) (Show Source):
You can put this solution on YOUR website! How long will it take a $1,700.00 investment to earn $350.00 in interest if it is invested at 10% compounded quarterly.
:
let q = no. of quarters for this to happen
Quarterly interest rate: 10/4 = 2.5%
:
Using natural logs
.0247q = .2113
q =
p = 8.55, it would take 9 quarters to make at least $350 interest
About 2 years 3 months
You can put this solution on YOUR website!
How long will it take a $1,700.00 investment to earn $350.00 in interest if it is invested at 10% compounded quarterly.
You can put this solution on YOUR website! How long will it take a $1,700.00 investment to earn $350.00 in interest if it is invested at 10% compounded quarterly.
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FV = PV*(1.025)^t
2050 = 1700*(1.025)^t
1.025^t = 2050/1700
t*ln(1.025) = ln(205/170)
t = ln(41/34)/ln(1.025)
t = ~ 7.58 quarters
t = ~ 1 year, 9 months
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Since banks don't round up --> 2 years
