Find the time period for an investment of 5000 dollars to gr

Solution

So, you\'re having a compound interest problem and you know everything except the time t. OK. 6200 = 5000*(1+0.075/4)^(4*t). That is the equation you have to solve. so, divide both sides by 5000 and you get 1.2 = (1.01875)^(4*t) Now, take natural logs of both sides and remember that ln(a)^x = x*ln(a). ln(1.2) = (4*t)*ln(1.01875) ln(1.01875) = 0.018576386... ln(1.2) = 0.182321557... So, divide both sides by ln(1.01875) = 0.018576386... to get 9.814695 rounded = 4*t Next, divide both sides by 4 to get t = 2.4543673726..yrs