# mpf

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how long will it take for \$ 500 to amount \$700 of interested at \$8% compounded quarterly?

• mpf -

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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