Math

If you deposit P dollars into a bank account paying an annual interest rate r, with n interest payments each year, the amount A you would have after t years is A=P(1+r/n)^nt. Kevin places $100 in a savings account earning 6% annual interest, compound quarterly. If Kevin adds no more money to his account, how long will it take his money to double?

  1. 👍 0
  2. 👎 0
  3. 👁 358
  1. P = Po(1+r)^n.

    r = (6%/4)/100% = 0.015 = Quarterly %
    rate expressed as a decimal.

    n = 4comp/yr * t = 4t.

    P = 100(1.015)^4t = 200
    (1.015)^4t = 200/100 = 2.00
    4t*Log1.015 = Log2
    4t = Log2/Log1.015 = 46.556
    t = 11.64 Yrs.

    1. 👍 0
    2. 👎 0

Respond to this Question

First Name

Your Response

Similar Questions

  1. math

    Please someone show me how to work this one out? Suppose Caroline is a cinephile and buys only movie tickets. Caroline deposits $3000 in a bank acct that pays an annual interest rate of 20%. You can assume that this interest rate

  2. math

    Mr. Flores opened an account with a deposit of $5,000 The account earned annual simple interest. He did not make any additional deposits or withdrawals. At the end of 4 years, the balance of the account was $6,500. What is the

  3. Math

    Jessica wants to accumulate $15,000 by the end of 4 years in a special bank account, which she had opened for this purpose. To achieve this goal, Jessica plans to deposit a fixed sum of money into the account at the end of the

  4. Math help! Check my answers ASAP!

    1. Which graph most likely describes the distance a person walks in a 24-hour period? (1 point) a. Graph IV** b. Graph II c. Graph I d. Graph III 2. A car traveling at 25 mi/h accelerates to 48 mi/h over the first 5 seconds. It

  1. math

    If 3000 dollars is invested in a bank account at an interest rate of 9 per cent per year, find the amount in the bank after 5 years if interest is compounded annually

  2. algebra

    Four different accounts are described below. Order the accounts according to their values after 20 years, from greatest to least. 1.You deposit 1500$ in an account that earns 5% annual interest compounded quarterly. 2. You deposit

  3. PRE-CALCULUS

    . Sam won $150,000 in the Michigan lottery and decides to invest the money for retirement in 20 years. Find the accumulated value for Sam’s retirement for each of his options: (a) a certificate of deposit paying 5.4% compounded

  4. algebra

    sam saved his money until he had $10000 to invest.he invested x dollars into certificate of deposit (cd) with an annual interest rate of 2% and the remaining y dollars into a mutual fund with annual interest of 1.5% total interest

  1. Math

    Suppose you deposit $1000 in an account paying 4% annual interest, compounded monthly. How much money will you have after 15 years?

  2. Pre-Algebra

    Emma is saving money for college. She has $800 and wants to deposit it into 2 different savings accounts. She decides to deposit $500.00 into an account, Account IN, which earns 2.5% annual simple interest. She will then deposit

  3. math

    how much would adam have to deposit in a saving account to earn 100 dollars in interest over 4 years at 5% simple annual interest rate.

  4. differential equation

    If P(t) is the amount of dollars in a savings bank account that pays a yearly interest rate of r% compounded continuously ,then dP/dt=(r/100)(P) , t in years . Assume the interest is 5% annually ,P(0)=$1000 ,and no monies are

You can view more similar questions or ask a new question.