On February 1, 1977, John deposited $2250 into a savings account paying 5.76% interest, compounded quarterly. If he hasn't made any additional deposits or withdrawals since then, and if the interest rate has stayed the same, in what year did his balance hit $4500, according to the rule of 72?

A. 1992
B. 1990
C. 1989
D. 1991

Question

On February 1, 1977, John deposited $2250 into a savings account paying 5.76% interest, compounded quarterly. If he hasn't made any additional deposits or withdrawals since then, and if the interest rate has stayed the same, in what year did his balance hit $4500, according to the rule of 72?

 		A.	1992
 		B.	1990
 		C.	1989
 		D.	1991

anonymous · Answer

$ 4,500 = $2,250 ( 1 + .0576 /4 ) ^ (4t )

anonymous · Answer

B. 1990