Question 271012
My homework problem states "You deposit $2000 into an account that pays for 2% annual interest compounded quarterly. How long will it take for the balance to reach $2500." 
using the formula, A = P (1 + r/n)^nt.
2500 = 2000(1 + (0.02/4))^(4t)
Divide both sides by 2000 to tget:
1.25 = 1.005^4t
Take the log of both sides and solve for "t":
(4t)log(1.005) = log(1.25)
4t = log(1.25)/log(1.005)
4t = 44.74
t = 11.0673
Rounding up: t= 12 years
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Cheers,
Stan H.