The Concord Community Park Association receives a $10,000 donation from an anonymous donor who stipulates that before using the funds to improve the park, they must invest the money until it has doubled in value. The Park Association decides to invest the money in an account that pays 7%, compounded quarterly.

a. Write an equation that models the growth in value of the donation over time.
b. How many years will it take for the initial donation to double?

Question

The Concord Community Park Association receives a $10,000 donation from an anonymous donor who stipulates that before using the funds to improve the park, they must invest the money until it has doubled in value.  The Park Association decides to invest the money in an account that pays 7%, compounded quarterly. 

a.	Write an equation that models the growth in value of the donation over time. 
b.	How many years will it take for the initial donation to double?

anonymous · Answer

I=prt      

I=interest
p=principle 
r=rate
t=time

so:
I=10000(.07)(t)

anonymous · Answer

You'll need 10000 dollars in interest to double the 10000 you started with, so plug that in for I in the equation and solve for t to get the time it will take

anonymous · Answer

Your the GREATES CaleBeavers