Question 983491: How long will it take an investment of 12,500 to earn $125 in interest at 4% per year ( use bankers interest Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! How long will it take an investment of 12,500 to earn $125
in interest at 4% per year ( use bankers interest)
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A(t) = P(1+(r/n))^(n*t)
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12500 + 125 = 12500(1+(0.04/1))^(1*t)
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1.01 = 1.04^t
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t = log(1.01)/log(1.04)
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t = 0.2538 years = 3.04 months
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Cheers,
Stan H.
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