Alfred is saving up money for a down payment on a house. He currently has $4185, but knows he can get a loan at a lower interest rate if he can put down $5019. If he invests the $4185 in an account that earns 4.1% annually, compounded quarterly, how long will it take Alfred to accumulate the $5019? Round your answer to 2 decimal places.

P = Po(1+r)^n.

Po = $4185.

r = (4.1%/4)/100% = 0.010.

n = 4Comp./yr. * t yrs. = 4t Compounding periods.

P = 4185(1.010)^4t = 5019.
1.010^4t = 1.19928.
4t*Log 1.010 = Log 1.19928.
4t = Log 1.19928/Log 1.010. 18.26.
t = 4.57 Yrs.

Well, saving up for a down payment on a house can be quite a challenge. But hey, at least Alfred has a head start with $4185! Now, let's see how long it will take for him to reach the magical number of $5019.

Using the magic of compounding interest, we can calculate this. Alfred's money is earning 4.1% annually, compounded quarterly. In simpler terms, that means his money grows even when he's not looking, just like those weeds in your garden.

To find out how long it will take for Alfred to accumulate $5019, we'll need to solve a little equation. The formula for compound interest is:

A = P(1 + r/n)^(nt)

Where:
A = the amount of money he needs ($5019)
P = the principal amount he starts with ($4185)
r = the annual interest rate (4.1%)
n = the number of times the interest is compounded per year (quarterly)
t = the time in years

Now, let's solve for t:

5019 = 4185(1 + 0.041/4)^(4t)

Oh, bother! Solving that equation is not as easy as pie. Luckily, we have calculators for that. By using the magic of mathematics, we determine that it will take Alfred approximately 4.09 years to accumulate the $5019.

So, Alfred needs to keep his money invested for around 4.09 years, which is about the same amount of time it takes for a penguin to perfect its waddling technique.

Remember, though, that this is just an estimate. Market fluctuations and other factors might influence the actual time it takes for Alfred to reach his goal. But hey, at least now he knows how long his money needs to grow, and he can plan accordingly. Good luck, Alfred!

To determine how long it will take Alfred to accumulate $5019, we need to calculate the time it will take for his investment to grow to that amount.

To do this, we can use the compound interest formula:

\[A = P(1 + \frac{r}{n})^{nt}\]

Where:
A = Total amount (including principal)
P = Principal amount (initial investment)
r = Annual interest rate (as a decimal)
n = Number of times interest is compounded per year
t = Number of years

In this case, Alfred's initial investment is $4185 (P) and he wants to reach $5019 (A), with an annual interest rate of 4.1% (r = 0.041) and quarterly compounding (n = 4).

Let's calculate the time it will take (t):

\[5019 = 4185(1 + \frac{0.041}{4})^{4t}\]

Simplifying the equation:

\[1.20029 = (1.01025)^{4t}\]

Taking the natural logarithm of both sides:

\[ln(1.20029) = ln((1.01025)^{4t})\]

Using the logarithmic property:

\[ln(1.20029) = 4t \cdot ln(1.01025)\]

Dividing both sides by \(4 \cdot ln(1.01025)\):

\[t = \frac{ln(1.20029)}{4 \cdot ln(1.01025)}\]

Using a calculator, we find:

\[t \approx \frac{0.183291}{4 \cdot 0.040582} \approx \frac{0.183291}{0.162328} \approx 1.128\]

Therefore, it will take approximately 1.13 years (rounded to 2 decimal places) for Alfred's investment to accumulate to $5019.

To answer this question, we can use the compound interest formula:

A = P(1 + r/n)^(nt)

Where:
A = the future value of the investment
P = the principal amount (initial investment)
r = annual interest rate (as a decimal)
n = number of times that interest is compounded per year
t = number of years

In this case, Alfred has $4185 that he wants to invest, the annual interest rate is 4.1% (or 0.041 as a decimal), and the interest is compounded quarterly (so n = 4). We need to find the value of t.

We can rewrite the formula as:

A = P(1 + r/n)^(nt)
5019 = 4185(1 + 0.041/4)^(4t)

Dividing both sides of the equation by 4185:
5019/4185 = (1 + 0.041/4)^(4t)

Approximating 5019/4185 to 1.2, the equation becomes:
1.2 = (1 + 0.01025)^(4t)

Now, we can take the logarithm of both sides to solve for t:
log(1.2) = log((1 + 0.01025)^(4t))

Using logarithmic properties, we can move the exponent of 4t down:
log(1.2) = 4t * log(1 + 0.01025)

Dividing both sides by 4 * log(1 + 0.01025):
t = log(1.2) / (4 * log(1 + 0.01025))

Using a calculator, we find:
t ≈ 3.99 (rounded to two decimal places)

Therefore, it will take approximately 3.99 years for Alfred to accumulate the $5019 needed for his down payment.