Find the time required for an investment of $4000 to grow to $7000 at an interes

Algebra
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Find the time required for an investment of $4000 to grow to $7000 at an interest rate of 6.5% per year, compounded quarterly. (Round your answer to two decimal places.)

 yr
Apr 14th, 2015

Since every year, an amount 'x' will become 'x*1.065', every quarter it will become x*(1.065)^(n/4) for any number of quarters 'n'. 
So 7000=4000*(1.065)^(n/4). 
Solve for n: 7/4=(1.065)^(n/4) 
ln(7/4)=(n/4)ln(1.065) 
4*ln(7/4)/ln(1.065)=n 
n=35.54 quarters or 8 years, 10 months, 19 days. 


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Apr 14th, 2015

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