Question 1196857


{{{A=P(1+r/n)^(nt)}}}

Given Data:

Present value: 
{{{P=5000}}}
Future value: 
{{{A=7300}}}
Rate of interest: {{{r=7.5}}}%={{{0.075}}}
Number of periods per year;    {{{ 4}}}


{{{7300=5000(1+0.075/4)^(4t)}}}

{{{7300/5000=(1.01875)^(4t)}}}

{{{(1.01875)^(4t)=73/50}}}


take log of both sides


{{{log((1.01875)^(4t))=log(73/50 )}}}

{{{(4t)log(1.01875)=log(73)-log(50 )}}}

{{{t=(log(73)-log(50 ))/(4log(1.01875))}}}

{{{t=5.092977240303428}}}

{{{t=5.1}}} 


approximately {{{5.1}}} years