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

Algebra
Tutor: None Selected Time limit: 1 Day

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

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