Answer:
We conclude that the time required to get a total amount of $6,880.00 from compound interest on a principal of $ 4,400.00 at an interest rate of 2.4% per year and compounded 4 times per year is 18 years and 8 months.
Step-by-step explanation:
We know the formula
[tex]A\:=\:P\left(1\:+\:\frac{r}{n}\right)^{nt}[/tex]
where
Given
Total amount A = $6,880
Principle amount P = $4,400
Interest Rate r = 2.4% = 0.024 per year
Compounded quarterly = n = 4
Thus, the time period can be fetched using the simplified-derived equation suchs as:
t = ln(A/P) / n[ln(1 + r/n)]
substituting the values
t = ln(6,880.00/4,400.00) / ( 4 × [ln(1 + 0.006/4)] )
t = 18.8 years
Therefore, we conclude that the time required to get a total amount of $6,880.00 from compound interest on a principal of $ 4,400.00 at an interest rate of 2.4% per year and compounded 4 times per year is 18 years and 8 months.
