you deposit 500 in an ccount that pays 4% annual interest.how long does it take the balance to reach the following amounts
1000 when interest is compouded compounded quaterly.
A)4.4
b)17.4
c)17.7
D)69.7

Question

you deposit 500 in an ccount that pays 4% annual interest.how long does it take the balance to reach the following amounts
1000 when interest is compouded compounded quaterly.
A)4.4
b)17.4
c)17.7
D)69.7

radar · Answer

1000=500(1+.04/4)^4t
1000=500(1.01)^4t
2=1.01^4t
4tlog 1.01=log2

radar · Answer

4t(.0043213)=.30103
.0172855t=.30103
t=17.415 years

radar · Answer

The formula for compound interest:

$$A=P(1 + r/n)^{nt}$$Where A is the Amount, P is the Principal, r is the rate, n is the compounding number per year. and t is the number of years.

radar · Answer

This problem the t was the unknown.