Question

how long will it take for 2750 to increase to 4244.62 at a 7.3% rate compounded quarterly

Answer 1

$\huge {\underline {\underline {\mathbb {\orange {Answer\: :-}}}}}$

⇨We can use formula for future value to calculate this.

⇨The formula is:

$\huge {\underline {\underline {\mathbb {FV = PV x (1+r)^n}}}}$

⇨One thing to note is that the rate used should be quarterly which would be 1.825% (7.3/4)

$\huge {\underline {\underline {\mathtt {\red {So\: using\: the\: formula }}}}} [/tex</p><p></p><p>[tex] \text {⇨4244.62 = 2750 x (1 + 0.01825)^n}$

$\text {⇨1.01825^n = 1.5435}$

$\huge {\underline {\underline {\mathcal {\pink {Using\: log }}}}}$

$\text {⇨n = Log 1.5435 / Log 1.01825}$

$\text {⇨n = 24}$

$<font color ="green ">$

$<marquee Scrollamount =10> ...So it would take "24 quarters or 6 years"... </marquee >$