Question

Compound interest:


Find the time required for an investment of $5,000 to go to $8,000 at an interest rate 7.5% per year, compounded quarterly.

Answer 1

6.325284 years

= 1/4 * Ln(8000/5000) / Ln(1 + 0.075/4)

Answer 2

can you show using the actual compound interest formula without skipping steps please

Answer 3

P = principal amount (the initial amount you borrow or deposit)
r = annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = amount of money accumulated after n years, including interest.
n = number of times the interest is compounded per year

Answer 4

yeah I understand,
CAN YOU JUST SHOW ME THE FORMULA WITH THE NUMBERS IN THE CORRECT SPACES

Answer 5

5000 * (1+0.075/4)^4t = 8000
so (1 + 0.075/4)^4t=8000/5000 take a log of both sides ...

Answer 6

M = P( 1 + i )n

Answer 7

log((1+0.075)^4t)=4t*log(1+0.075/4)
so 4t=log(8000/5000)/log(1+0.075/4) and t = 1/4*log(8000/5000)/log(1+0.075/4)

Answer 8

im not getting the same answer, your writing isnt very clear.