Homework Help: College algebra

Posted by Lex on Monday, March 7, 2011 at 7:43pm.

suppose you invest 2500 and earn 4.2% annual interest, compounded quarterly. how long will it tak for your investment to double?

algebra - drwls, Monday, March 7, 2011 at 7:52pm
Solve this equation for the number of quarters, n.

[1 + (0.042/4)]^n = 2

1.0105^n = 2

n = 66.36

That many quarters is 16.58 years

You will have to wait for the first interest-paying date after 16.5 years.

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