Question

COMPOUND INTEREST QUESTION
Oliver’s grandfather invested $150 at 5% interest compounded quarterly. When Oliver inherited it, the amount was $6,000. For how many years had the $150 been invested?
Okay, so the formula to solve compound interest problems is A=P[1+(r/n)]^ny.
I wrote down that A = 6,000, P = 150, r = 0.05, n = 4 and y = unknown. First part of the question – did I set that up correctly? Here’s how I plugged it in to the formula.
6,000=150[1+(0.05/4)]^4y
When I set this up, I simplified the 150[1+(0.05/4)] part first, but I got stumped whenever I got to 4y. How on earth do I solve this problem?

Answer 1

Once again, I honestly hate to bug you @whpalmer4 but you're always such a huge help... I'll give you a medal if you help me!