SOLUTION: Hello! I recieved this question on my homework and don't fully understand how to set it up or solve it well. The question reads as follows: If Scott Corbett invests $5,000 at 6

Algebra ->  Exponential-and-logarithmic-functions -> SOLUTION: Hello! I recieved this question on my homework and don't fully understand how to set it up or solve it well. The question reads as follows: If Scott Corbett invests $5,000 at 6      Log On


   

Question 1159801: Hello! I recieved this question on my homework and don't fully understand how to set it up or solve it well. The question reads as follows:
If Scott Corbett invests $5,000 at 6% compounded quarterly, how long will it be before his investment has grown to $14,000? Any help would be greatly appreciated! Thank you!
Found 2 solutions by ikleyn, MathTherapy:
Answer by ikleyn(52817) About Me  (Show Source):
You can put this solution on YOUR website!
.

The amount at this account increases in accordance with this formula


    FV = 5000%2A%281%2B0.06%2F4%29%5En,


where "n" is the number of quarters;  FV is the future value after n quarters.


So, you should find the unknown "n" from the equation

    14000 = 5000%2A%281%2B0.06%2F4%29%5En.


Divide both sides by 5000

    14000%2F5000 = 1.015%5En

or

    2.8    = 1.015%5En


Take logarithm base 10 of both sides

    log(2.8) = n*log(1.015)


and calculate n

    n = log%28%282.8%29%29%2Flog%28%281.015%29%29 = 69.15  quarters.


As you do understand, in this case we should round "n" to the closest LARGER integer, so we get the 


ANSWER.  70 quarters, or  17 years and half.

Solved.

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To learn about compounded accounts,  read the lessons
    - Compounded interest percentage problems
    - Problems on discretely compounded accounts
in this site.


Answer by MathTherapy(10555) About Me  (Show Source):
You can put this solution on YOUR website!
Hello! I recieved this question on my homework and don't fully understand how to set it up or solve it well. The question reads as follows:
If Scott Corbett invests $5,000 at 6% compounded quarterly, how long will it be before his investment has grown to $14,000? Any help would be greatly appreciated! Thank you! 
If you got this for homework, you should at least know what formula to apply. The topic may've been explained to you, but if it wasn't, do you even have a 

text book and if so, did you try to figure out anything regarding trying to answer it?