posted by .

The Concord Community Park Association receives a $10,000 donation from an anonymous donor who stipulates that before using the funds to improve the park, they must invest the money until it has doubled in value. The Park Association decides to invest the money in an account that pays 7%, compounded quarterly.

a. Write an equation that models the growth in value of the donation over time.
b. How many years will it take for the initial donation to double?

  • math -

    a. P = Po(1+r)^n.

    b. Po = $10,000 = Initial deposit.

    r = (7%/4)/100% = 0.0175 = Quarterly %
    rate expressed as a decimal.

    n = The # of compounding periods.

    P = 10000*(1.0175)^n = $20,000.
    (1.0175)^n = 2.0
    n*Log(1.0175) = Log2
    n = Log2/Log(1.0175)=40 Comp. periods.

    T = 40Comp. / 4comp./yr = 10 Years.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Pre algebra

    At the wintergrove amusement park you can purchase a season discount pass for 75$ that will allow a 10$ admission to the park all season. If you do not purchase a season discount pass, then the park admission is 35$. Determine the …
  2. math

    a survey was taken at the park. Children were asked how many times they had visited the park this year. find the range, mode, median of the data to the right. trips to the park. number of visits 3 4 5 6
  3. math

    the perimeter of a dog park is 156 ft. If the length of the park is 2 ft. less than 3 times the width, what are the dimensions of the dog park?
  4. Math

    You will be designing a park your park must contain the following a rectangle 100yds x 120yds . A picnic n playground area must be add up to be at least 1/2 of the park the picnic area must have a circular garden
  5. Economics

    People are more likely to clean up waste in their homes than at a community park because.. A. people expect the community park to be dirty. B. hiring a person to clean the home is expensive. C. they own and therefore feel responsible …
  6. Math

    the perimeter of a rectangular park is 1080 yds. The width of the park is 240 yds. What is the length of the park?
  7. math

    A rectangular park has an area of 2/3 square mile. The length of the park is 2 2/3 the width of the park. What is the width of the park?
  8. English

    Posted by rfvv on Tuesday, November 10, 2015 at 5:23pm. 1. Yosemite is famous for its natural wonders. 2. We arrived at Yosemite in the afternoon. ===================== In the sentences above, what does "Yosemite" mean?
  9. Math

    The park had initially planned to charge $8 for admission and expected to have 2400 visitors a day. Allison and Juan were assigned the task of analyzing the park's admission revenues. 1.a)How much revenue would the park have for one …
  10. English

    1. Yosemite is famous for its natural wonders. 2. We arrived at Yosemite in the afternoon. ===================== In the sentences above, what does "Yosemite" mean?

More Similar Questions