If you deposit $7,000 into an account paying 7% annual interest compounded quarterly, how long until there is $12,400 in the account?
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Answer:
Calculate:
Time (t)
Where: t = log(A/P) / n[log(1 + r/n)]
Total P+I (A): = $ 12,400.00
Principal (P): = $ 7,000.00
Rate (R): % = 7
Compound (n): Compounding Quarterly (4/Yr)
Answer:
t = 8.24 years
jummanshaikh5000:
if you deposit $6000 into an account paying 6.5% annual intrest compounded quarterly. how long until there is $12600 in the account
sir can you tell how to do it
First, convert R percent to r a decimal
r = R/100
r = 6.5%/100
r = 0.065 per year,
Then, solve our equation for t
t = ln(A/P) / n[ln(1 + r/n)]
t = ln(12,600.00/6,000.00) / ( 4 × [ln(1 + 0.01625/4)] )
t = 11.507 years
Summary:
The time required to get
a total amount of $ 12,600.00
from compound interest on a principal of $ 6,000.00
at an interest rate of 6.5% per year
and compounded 4 times per year
is 11.507 years. (about 11 years 6 months)
r = R/100
r = 6.5%/100
r = 0.065 per year,
Then, solve our equation for t
t = ln(A/P) / n[ln(1 + r/n)]
t = ln(12,600.00/6,000.00) / ( 4 × [ln(1 + 0.01625/4)] )
t = 11.507 years
Summary:
The time required to get
a total amount of $ 12,600.00
from compound interest on a principal of $ 6,000.00
at an interest rate of 6.5% per year
and compounded 4 times per year
is 11.507 years. (about 11 years 6 months)
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