SOLUTION: Find the length of time required for an investment of $1500 to amount to $2000 at rate of 8% per year compounded quarterly. Use the equation below your answer A=P(1+i)^n where p

Algebra ->  Logarithm Solvers, Trainers and Word Problems -> SOLUTION: Find the length of time required for an investment of $1500 to amount to $2000 at rate of 8% per year compounded quarterly. Use the equation below your answer A=P(1+i)^n where p      Log On


   

Question 1137954: Find the length of time required for an investment of $1500 to amount to $2000 at rate of 8% per year compounded quarterly. Use the equation below your answer
A=P(1+i)^n where p is the principal, n is the number of conversion periods
At the rate of interest per conversion period, and is the number of conversion periods
Answer by ikleyn(52817) About Me  (Show Source):
You can put this solution on YOUR website!
.
2000 = 1500%2A%281%2B0.08%2F4%29%5E%284%2At%29   where t is the time in years  ====>


2000%2F1500 = %281%2B0.02%29%5E%284%2At%29  ====>


4%2F3 = 1.02%5E%284%2At%29


1.02%5E%284%2At%29 = 4%2F3  ====>


4t*log(0.02) = log%28%284%2F3%29%29 = 0.124939


t = 0.124939%2F%284%2Alog%28%281.02%29%29%29 = 3.63 years. 


ANSWER.  Counting in quarters, 3 years and 9 months is enough.