Question

QUESTION 4 1 POINT After how many years, to the nearest whole year, will an investment of $100,000 compounded quarterly at 4% be worth $213,022?​

Answer 1

20 years

Explanation:

1) First we need to find the multiplier for 4% so:

100+4 =104 and then divide by 100 which is 1.04

2) set up the euation as normal:

100000x 1.04^n= 213,022

and then you just do trial and error in the n to see how many years it will take so:

100000 x 1.04^1= 104000

which is too low so you make the number of years higher

100000 x 1.04^20 = $219112.3143 which is the answer because

100000 x 1.04^19= $210684.92 and thats just a little under 213,022 so 20 years makes it go over $213,022 and so 20 years is the answer.