SOLUTION: Answer the following questions, based on an account that earn 2.8% interest, compounded quarterly. a. How much will the account be worth if you invest $500 for 3 years? b. What i

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Question 920469: Answer the following questions, based on an account that earn 2.8% interest, compounded quarterly.
a. How much will the account be worth if you invest $500 for 3 years?
b. What is the APY of this account?
c. How much should you invest now in order to have an account valve of $25,000 in 15 years?
d. How long will it take $2000 to triple in value?
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
In General A%28t%29+=+P%281%2Br%2Fn%29%5E%28nt%29
A = Accumulated Amount
P= principal =
r= annual rate = .
n= periods per year =
t= years =
A%28t%29+=+P%281%2B.028%2F4%29%5E%284%2A3%29
A = 500(1.004)^(12)
....
25000+=+P%281.004%29%5E%284%2A15%29
P = 25000/(1.004)^(60)
.......
3+=+%281.004%29%5E%284t%29
log(3)/4log(1.004) = t