SOLUTION: A sum of $2500, 00 earns interest at a rate of 12% per year compounded quarterly. How long will it take the investment to grow to $ 400, 000?

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Question 1164228: A sum of $2500, 00 earns interest at a rate of 12% per year compounded quarterly. How long will it take the investment to grow to $ 400, 000?
Found 3 solutions by greenestamps, josgarithmetic, ikleyn:
Answer by greenestamps(13200) About Me  (Show Source):
You can put this solution on YOUR website!


Re-post, showing the correct sum invested.


Answer by josgarithmetic(39620) About Me  (Show Source):
You can put this solution on YOUR website!
How much is the sum to be invested?
Calling the sum to invest, A, then 12% per year compounded QUARTERLY, means 12%2F4=3 or 3% interest rate PER QUARTER.

Wanted is finish with $400000.

400000=A%2A%281.03%29%5En, in which n is how many quarter-of-the-year periods; or how many three-month periods.

Decide what your A value really is, and solve the equation for n; and then convert that into the number of years or months.

Answer by ikleyn(52798) About Me  (Show Source):
You can put this solution on YOUR website!
.

In the number  2500,00  in your post, you placed "comma" in wrong place.


It is  MATH;  hence,  everything  MUST  BE  in their correct places:

every letter, every digit, and even every punctuation sign.



            And it is  YOUR  RESPONSIBILITY  and  YOUR  DUTY  to write correctly to this forum.