You deposit $1300 in an account that pays 7% annual interest, compounded quarterly.
How many quarters will it take for the balance to reach $2570?
I ended up with an answer of 1.963 which wasn't right... how can I go about doing this problem? Any help would be much appreciated. Thanks for your time.
How many quarters will it take for the balance to reach $2570?
I ended up with an answer of 1.963 which wasn't right... how can I go about doing this problem? Any help would be much appreciated. Thanks for your time.
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A = p(1+r)^n
2570 = 1300( 1 + 1.75%)^n
= 1300 ( 1.0175)^n
2570 /1300 = (1.0175)^n
Take logs of both sides
log (257/130) = n log 1.0175
n = log (257/130) / log 1.0175
= 39.28 quarters
= 40 quarters
2570 = 1300( 1 + 1.75%)^n
= 1300 ( 1.0175)^n
2570 /1300 = (1.0175)^n
Take logs of both sides
log (257/130) = n log 1.0175
n = log (257/130) / log 1.0175
= 39.28 quarters
= 40 quarters