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?

Solución

S o p hi e in v es t e d 93, 000 in an a cco u n t p a y in g an in t eres t r a t e o f 5.6% co m p o u n d e d q u a r t er l y . A ss u min g n o d e p os i t s or w i t h d r a w a l s a re ma d e, h o w l o n g w o u l d i t t ak e, t o t h e n e a res t ye a r, f or t h e v a l u e o f t h e a cco u n t t o re a c h 170, 500 ?

Time : 10.9

Pasos de solución

Translate the problem into an equation:

170500 = 93000 (1 + \frac{0.056}{4})^{4 t}

Resolver para

t, 170500 = 93000 (1 + \frac{0.056}{4})^{4 t} : t = 10.9

Time : 10.9