Suppose you invested $5,000 earning a 5% interest rate compounded quarterly.
a) How much would your investment be in 50 years?
b) When will the investment be worth more than $10,000?
c) What if you invested the same amount in an account that paid 5% interest compounded monthly. How much more would your investment be worth after 50 years?

Question

Suppose you invested $5,000 earning a 5% interest rate compounded quarterly.
a) How much would your investment be in 50 years?
b) When will the investment be worth more than $10,000?
c) What if you invested the same amount in an account that paid 5% interest compounded monthly. How much more would your investment be worth after 50 years?

ironhide · Answer

a - 5000 x .05 = ____ then ____ x 50 = _,_,_,_ then divide by whatever is a quarter of 365 i think
b - continue multiplying ____ by numbers higher than 50 until you get past $10000
c - do what you did for a except divide by 12

you're going to get a better answer/more replies if you put this in the math section! :) you're in the history section lol