Question

Sophie invested $93,000 in an account paying an interest rate of 5.6% compounded quarterly. Assuming no deposits or withdrawals are made, how long would it take, to the nearest year, for the value of the account to reach $170,500?

Answer 1

11

Explanation:

170500 = 93000 (1+ 0.056/4)^4t

170500 = 93000(1.014)^4t

93000 93000

170500/93000

1.8333333 = 1.014^4t

Log(1.8333333) = 4tlog(1.014)

4tlog(1.014) 4tlog(1.014)

43.5977802 = 4t

4t 4t

10.899445 ≈ 11

Answer 2

11

Explanation: