Bob has 15,000. He invests it at an interest rate of 4.25 % per years compounded quarterly.
a) how much does bob have after one and one half years
b)how long will it take his investment to reach 25,000?

Question

Bob has 15,000. He invests it at an interest rate of 4.25 % per years compounded quarterly.
a) how much does bob have after one and one half years
b)how long will it take his investment to reach 25,000?

kropot72 · Answer

(a)
$$A=15000(1+\frac{0.0425}{4})^{(1.5\times4)}=you\ can\ calculate$$

anonymous · Answer

17,737.59

anonymous · Answer

Correct? @kropot72

kropot72 · Answer

My calculation gives a different result.

anonymous · Answer

Oh i had 0.0425/1.5 not 4

anonymous · Answer

So if I wanted to see how long it will take to reach 25000 I would $$25000=15000(1+\frac{ 0.0425 }{ 4 })^{4\times t}$$

anonymous · Answer

And for the first you got: 15,982.01?

kropot72 · Answer

Your new result for (a) is correct. Your starting equation to solve (b) is also correct. Good work!

anonymous · Answer

Lawd have mercy, practice really does make perfect. Thanks dude I might be on tomorrow if i get stuck on anything!

kropot72 · Answer

Lol. I'll help tomorrow if needed.