Question

Approximately how many years would it take for a $10,000 investment, with an 8% interest per annum, to reach $14,800 if the interest is compounded quarterly?

Answer 1

You would do:

t = time in years

14,800 = 10,000(1+0.08/4)^4t

1.48 = 1.02^4t

log_1.02(1.48) / 4 = t

((log 1.48)/ (log 1.02))/4 = t

t ~ 4,949 years