SOLUTION: Recall that a formula bank account earning compound interest is A=P(1+r/m)^mt - given where A is the amount in the bak account after t years, r is the interest rate, and m i

Algebra ->  Logarithm Solvers, Trainers and Word Problems -> SOLUTION: Recall that a formula bank account earning compound interest is A=P(1+r/m)^mt - given where A is the amount in the bak account after t years, r is the interest rate, and m i      Log On


   

Question 356135: Recall that a formula bank account earning compound interest is
A=P(1+r/m)^mt - given
where A is the amount in the bak account after t years, r is the interest rate, and m is the number of the compounding periods per year. If you put $5000 in an account earning 5% interest compounded quarterly,
im
A) how much money will be in the account after 4 years?
I figured this part out... I got $6,099.45.
B) How long will it take until the account is worth $10,000?
I got the equation set up... 10,000=5000(1+.05/4)^4t however not sure what to do next.
Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!


Good start.



Divide both sides by 5000 and do the arithmetic inside of the parentheses:



Now take the log of both sides. You can use or -- Doesn't matter, you get the same answer either way.



Now use:





Then divide both sides by



Now all you have left is a little calculator work. Let me know what you got.

John

My calculator said it, I believe it, that settles it
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