SOLUTION: hey guys i was wondering if you guys could help me out with this question, thanks a lot. 1) A student invests $4000 in a savings bond that earns 5.3% interest compounded quarter

Algebra ->  Finance -> SOLUTION: hey guys i was wondering if you guys could help me out with this question, thanks a lot. 1) A student invests $4000 in a savings bond that earns 5.3% interest compounded quarter      Log On


   

Question 928039: hey guys i was wondering if you guys could help me out with this question, thanks a lot.
1) A student invests $4000 in a savings bond that earns 5.3% interest compounded quarterly.
a) Write the future value of this investment as a function of time.
b) What is the value of this investment after 3 years?
c) Algebraically calculate the numbers of years for the investment to be worth $12,000.
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+=+4000%281%2B.053%2F4%29%5E%284t%29+=+4000%281.01325%29%5E%284t%29+
......
A%28t%29+=++4000%281.01325%29%5E%2812%29+ = $4,684.46
.......
12000%2F4000+=%281.01325%29%5E%284t%29+
log(3)/4log(1.01325) = t = 20.8656 years
IN checking calculations round as directed