Posted by ahmed on Wednesday, March 14, 2012 at 3:28am.
Pt = Po(1+r)^n.
r = (8% / 4) / 100% = 0.02 = Quarterly
% rate expressed as a decimal.
n = The # of compounding periods.
Pt = $500(1.02)^n = $700.
(1.02)^n = 700 / 500 = 1.40.
n*Log(1.02) = Log(1.40).
n = LOg(1.40) / Log(1.02) = 16.991.
T = 16.991Comp. / 4Comp./yr=4.25 Yrs.
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