Question 1164045: A sum of $2500, 000 earns interest at a rate of 12% per year compounded quarterly. How long will it take the investment to grow to $ 400, 000?
Found 2 solutions by ikleyn, solver91311:
Answer by ikleyn(52900)   (Show Source):
You can put this solution on YOUR website! .
A sum of $2500, 000 earns interest at a rate of 12% per year compounded quarterly. How long will it take the investment to grow to $ 400, 000?
~~~~~~~~~~~~~~~
Hello, as I read your post, it asks about growing from $ 2500, 000 to $ 400, 000.
You EITHER write incorrectly in your post, OR do not understand (OR do not care about) the meaning of your words.
In any case, double check your post.
Then re-check and cross-check.
After finding and fixing your error, you may re-post to the forum.
Please do not post it to me personally.
Answer by solver91311(24713)  (Show Source):
You can put this solution on YOUR website!
The future value,  , of an investment of  at a rate of  percent per annum compounded  times per year for  years is given by:
^{nt})
You want the time for to grow to , so
^{nt}\ =\ \frac{A}{P})
Plug in the numbers you know, namely , , , and , and then solve for the remaining variable,
John
My calculator said it, I believe it, that settles it
|
|
|
