Asked by Ann

How long must 4500 dollars be left on deposit at 8 percent compounded quarterly to reach a total accumulation of 15825 dollars?

I did A=P(1+ r/n)^nt

so I got 15825 = 4500 ( 1 + 0.08/4)^4t, and got t = 3.24886 years...am I even using the right formula?
Answered by Damon
Not calculus. algebra

.08/4 = .02 per quarter
n = number of quarter years

15825 = 4500 (1.02)^n

log (15825/4500) = n log 1.02

.546131 = n log 1.02

n = 63.5 quarter years
so
63.5 /4 = 15.88
Answered by Damon
In your earlier question you did not "factor out" the log function.
you (or Reiny) said
if log x = log y
then x = y
Answered by Ann
okay thanks
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