Asked by Chris
Hello Steve, it didn't work for "t" i can't get the actual value...
Find the time required for an investment of 1 dollars to grow to 7200 dollars at an interest rate of 7.5 percent per year, compounded quarterly
Find the time required for an investment of 1 dollars to grow to 7200 dollars at an interest rate of 7.5 percent per year, compounded quarterly
Answers
Answered by
bobpursley
7200=1(1+ .075/4)^t/4 where t is in years.
You actually want one dollar to grow to 7500?
take log of each side
log 7200=t/4 (log 1.018)
t=4* log7200/log1.018=1991 years
You actually want one dollar to grow to 7500?
take log of each side
log 7200=t/4 (log 1.018)
t=4* log7200/log1.018=1991 years
Answered by
Chris
Hello Bobpursley, it still didn't work. it says wrong answer. Thanks
Answered by
Damon
^4t not to the t/4
1.01875^4t = 7200
4 t = log 7200/log 1.01875
t = 120 years
1.01875^4t = 7200
4 t = log 7200/log 1.01875
t = 120 years
Answered by
Chris
Hello Damon, thanks a lot. But it says incorrect.
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