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19 January, 13:13

A man invests $5000 in an account that pays 8.5% interest per year, compounded quarterly

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  1. 19 January, 13:16
    0
    Oh this is easy

    5,000x. 085=425

    That is the amount he made in the year from intrest

    Now cut that into a 4th

    106.25

    He makes 106.25 quarterly
  2. 19 January, 13:18
    0
    5000 (1+.085/4) ^n=1000

    to find n use log:

    1.02125^n

    N X log1.02125

    when computed=32.9

    round to 33 quarters compounded

    33/4

    equals to 8 years 3 months
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