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An investment of $25,400 is placed into an account that earns 6.5% interest compounded quarterly. In how many years will the investment be worth twice the original amount?
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An investment of $25,400 is placed into an account that earns 6.5% interest compounded quarterly. In how many years will the investment be worth twice the original amount?
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Question 165019This question is from textbook
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An investment of $25,400 is placed into an account that earns 6.5% interest compounded quarterly. In how many years will the investment be worth twice the original amount?
I am thinking I would use the compound interest formula A = P(l + i)^n
I had set it up like below but I seem I am doing it wrong. Should I have went with 4 or 12? any help appreciated
i = 6.5%/4 = .065/4 = .01625
101600 = 25,400(1 + .01625)^n
101600 = 25400(1.01625)^n
4 = (1.01625)^n
log4 = log(1.01625)^n
log4 = n log 1.01625
log4/log1.01625 = n
86.0017 = n
86.0017/4 = 21.50004
In approx. 21.5 years , the investment will be worth $101,600. This question is from textbook
You can put this solution on YOUR website!
I dont know how you got your answer, but try this one:
Use compound interest formula -->
where, , wants twice the initial invest. right?
Continuing, -----> ---> 10years & 9 months, ANSWER
Let's check, using our formula,
Thank you,
Jojo
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