Question 1202028: Find the time (in years) that it will take an initial investment of R2250 to double in value at
an interest rate of 8,75% per annum, if the interest is compounded quarterly. (Give the answer
correct to two decimal places by using a calculator.)
Answer by mananth(16946)   (Show Source):
You can put this solution on YOUR website!
Find the time (in years) that it will take an initial investment of R2250 to double in value at an interest rate of 8,75% per annum, if the interest is compounded quarterly.
A=p*(1+r)^tn
A = accrued amount = 4500
p = principal= 2250
r = rate of interest ( in decimals) = 0.0875
n= period =4
t = years = ?
solve the equation for t
t = ln(A/P) / n[ln(1 + r/n)]
t = ln(4,500.00/2,250.00) / ( 4 × [ln(1 + 0.0875/4)] )
t = ln(4,500.00/2,250.00) / ( 4 × [ln(1 + 0.021875)] )
t = 8.008 years ( round it off)
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