Joseph invested 89,000 in an account paying an interest rate of 6.6% compounded quarterly. Assuming no deposits or withdrawals are made, how long would it take, to the nearest tenth of a year, for the value of the account to reach 237,600?

Solution

Joseph invested 89, 000 in an account paying an interest rate of 6.6% compounded quarterly. Assuming no deposits or withdrawals are made, how long would it take, to the nearest tenth of a year, for the value of the account to reach 237, 600?

Solution

Time : 15

Solution steps

Translate the problem into an equation:

237600 = 89000 (1 + \frac{0.066}{4})^{4 t}

Solve for

t, 237600 = 89000 (1 + \frac{0.066}{4})^{4 t} : t = 15

Time : 15

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