David needs 6432 for a future project. He can invest 6000 now at an annual rate of 4%, compounded quarterly. Assuming that no withdrawals are made, how long will it take for him to have enough money for his project?

Solución

D a v i d n ee d s 6432 f or a f u t u re p ro j ec t . He c an in v es t 6000 n o w a t an ann u a l r a t e o f 4%, co m p o u n d e d q u a r t er l y . A ss u min g t ha t n o w i t h d r a w a l s a re ma d e, h o w l o n g w i ll i t t ak e f or him t o ha v e e n o ug h m o n ey f or hi s p ro j ec t ?

Time : 1.75

Pasos de solución

Translate the problem into an equation:

6432 = 6000 (1 + \frac{0.04}{4})^{4 t}

Resolver para

t, 6432 = 6000 (1 + \frac{0.04}{4})^{4 t} : t = 1.75

Time : 1.75