Question 613671
f = p*(1+(i/c))^y*c
f = future value
p = present value = 2800
i = 8% per year.
c = 4
y = number of years
i/c = 2% per quarter = .02
1 + i/c = 1.02
n = y*c = number of years * compounding periods per year.
your formula becomes:
f = 2800 * (1.02)^n
since you want the future value of your principal to double, then:
f = 2*2800 = 5600
your formula becomes:
5600 = 2800 * (1.02)^n
divide both sides of this equation by 2800 to get:
2 = (1.02)^n
take the log of both sides of this equation to get:
log(2) = log(1.02^n)
this becomes:
log(2) = n*log(1.02) based on properties of logarithms.
divide both sides of this equation by log(1.02) to get:
log(2) / log(1.02) = n
solve for n using the LOG function of your calculator to get:
n = 35.00278878
it take 35.00278878 quarters for your money to double.
this equates to 35.00278878/4 = 8.750697195 years.