Answered

Discover the answers you need at Westonci.ca, where experts provide clear and concise information on various topics. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently. Get precise and detailed answers to your questions from a knowledgeable community of experts on our Q&A platform.

Aubree invested $4,400 in an account paying an interest rate of 2.4% 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 $6,880?

Sagot :

absor201

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

  • A denotes the Accrued Amount (principal + interest)
  • P denotes the Principal Amount
  • r denoted the Annual Interest Rate
  • t denotes the Time Period in years
  • n denotes the number of compounding periods per unit t

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.

jarrattjett

Answer:

The answer is actually 18.7 -.-

Step-by-step explanation:

Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. Thanks for using our service. We're always here to provide accurate and up-to-date answers to all your queries. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.