Question 1100973
<br>The other tutor's answer is not right.  Maybe you can see what her error was....<br>
Her answer doesn't make sense.  The $28000 at 6% interest for just one year without quarterly compounding would be $29680, so with compounding it will be close to the target value.  So the answer should be something close to 1 year.<br>
The annual interest rate is 6%, or .06; the quarterly interest rate is one-fourth of that, or .015.  So we need to solve
{{{28000(1.015)^n = 29718}}}
where n is the number of compounding periods (quarters of a year).<br>
{{{1.015^n = 29718/28000}}}
{{{n*log(1.015) = log(29718/28000)}}}
{{{n = log(29718/28000)/log(1.015) = 4}}}<br>
So in fact the answer is that the $29718 value will be reached in 1 year with quarterly compounding.