Question

find the time required for an investment of $3000 to grow to $8000 at an interest rate of 7.5% per year, compounded quarterly ( round the answer to two decimal places)​

Answer 1

Answer:

• 13.20 years

Step-by-step explanation:

• Investment P = $3000
• Final amount F =  $8000
• Interest rate r = 7.5% = 0.075
• Compound number n = 4
• Time t = ?

Formula:

• F = P(1 + r/4)^(4t)

Solve for t:

• 8000 = 3000(1 + 0.075/4)^(4t)
• 8/3 = 1.01875^(4t)
• 4t log 1.01875 = log (8/3)
• 4t = 0.42596 / 0.008067
• t = 1/4(52.80)
• t = 13.20