Abigail invested 2,900 in an account paying an interest rate of 2.8% compounded quarterly. Assuming no deposits or withdrawals are made, how long would it take, to the nearest year, for the value of the account to reach 4,050?

Solución

A bi g ai l in v es t e d 2, 900 in an a cco u n t p a y in g an in t eres t r a t e o f 2.8% co m p o u n d e d q u a r t er l y . A ss u min g n o d e p os i t s or w i t h d r a w a l s a re ma d e, h o w l o n g w o u l d i t t ak e, t o t h e n e a res t ye a r, f or t h e v a l u e o f t h e a cco u n t t o re a c h 4, 050 ?

Time : 11.97

Pasos de solución

Translate the problem into an equation:

4050 = 2900 (1 + \frac{0.028}{4})^{4 t}

Resolver para

t, 4050 = 2900 (1 + \frac{0.028}{4})^{4 t} : t = 11.97

Time : 11.97