Find the time required for an investment of 5000 dollars to grow to 6200 dollars at an interest rate of 7.5 percent per year, compounded quarterly. Round your answer to 2 decimal places. Your answer is t= years. Question Help: Message instructor

Solution

F in d t h e t im e re q u i re d f or an in v es t m e n t o f 5000 d o ll a rs t o g ro w t o 6200 d o ll a rs a t an in t eres t r a t e o f 7.5 p erce n t p er ye a r, co m p o u n d e d q u a r t er l y . R o u n d yo u r an s w er t o 2 d ec ima l pl a ces . Y o u r an s w er i s t = ye a rs . Q u es t i o n He lp : M ess a g e in s t r u c t or

Time : 2.89

Solution steps

Translate the problem into an equation:

6200 = 5000 (1 + \frac{0.075}{4})^{4 t}

Solve for

t, 6200 = 5000 (1 + \frac{0.075}{4})^{4 t} : t = 2.89495 \dots

Time : 2.89495 \dots

Round

2.89495 \dots

to the nearest 2 decimal places:

2.89

Time : 2.89