SOLUTION: How many years will it take for $1200 to amount to $2300 if invested at 7 percent compounded quarterly? (Round your answer to 2 decimal places)
I used the following equation an
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-> SOLUTION: How many years will it take for $1200 to amount to $2300 if invested at 7 percent compounded quarterly? (Round your answer to 2 decimal places)
I used the following equation an
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Question 1178164: How many years will it take for $1200 to amount to $2300 if invested at 7 percent compounded quarterly? (Round your answer to 2 decimal places)
I used the following equation and plugged my answers in, but I am unsure of how to solve for the exponent.
S=P(1 + r/f)^(ft)
2300=1200(1+0.07/4)-^(4)(t)
2300=1221^4t Found 2 solutions by Boreal, ikleyn:Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! 2300=1200(1.0175)^4t
divide through by 1200
1.916667=1.0175^4t
take ln both sides
0.65059=4t ln 1.0175
0.65059/ln1.0175=4t=37.50
that is t=9.375 years or 9.38 years.
the key is remembering that the ln of (x)^b = b ln x.
