Question

Ron would like to have at least $150,000 saved to buy a condo. If he invests $50,000 in an account paying 6.19% interest compounded quarterly, will he reach his goal in 15 years? Show all work to justify your answer and include appropriate units.

Answer 1

150000 = 50000 [1 + (.0619 / 4)]^(y * 4)

3 = [1 + (.0619 / 4)]^(4y)

log(3) = 4y log[1 + (.0619 / 4)]

Answer 2

Thanks Scott!

Answer 3

Thanks Scott! Could you possibly break the format down a little more? Did he reach his goal and the units.