A man invests $4000 in an account that pays 6.5% interest per year, compounded q

label Algebra
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

A man invests $4000 in an account that pays 6.5% interest per year, compounded quarterly.
(a) Find the amount after 2 years? (Round your answer to the nearest cent.)
 

(b) How long will it take for the investment to triple? (Round your answer to two decimal places.)

 yr

Jul 16th, 2015

Thank you for the opportunity to help you with your question!

Amount = P (1+r/4)^n

Here P= 4000

r= 0.065

n= 2 years*4 = 8 times

a)

A=  4000 * (1+ 0.065/4) ^ 8

= $ 

4550.556
b)

Amount = 3*4000 = 12000

12,000 = 4000 * (1+ 0.065/4)^n

12,000 = 4,000 * 1.01625^n

n = 17.04 years


Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 16th, 2015

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Jul 16th, 2015
...
Jul 16th, 2015
Jun 27th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer