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Timber Inc. invested profits of $150,000.00 in a GIC at 4.90% compounded quarterly. How long will it take for the investment to grow to a value of at least $223,000.00?____years ____months

User Jimmy Long
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1 Answer

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The invested profit is: 150000

Formula of compund interest is:


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

Where,

P= principal amount

A= value of investment.

r=rate

n= number of times interest is compount per unit time

t= time


\begin{gathered} P=(A)/((1+(r)/(n))^(nt)) \\ 150000=\frac{223000}{(1+(4.9)/((1)/(4)))^{(1)/(4)t}} \\ (1+4.9*4)^{(1)/(4)t}=(223000)/(150000) \\ 20.6^(4t)=1.4866 \end{gathered}


\begin{gathered} 4t\ln 20.6=\ln 1.4866 \\ 4t=(\ln 1.4866)/(\ln 20.6) \\ t=0.032 \end{gathered}

User Per Larsen
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