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Sagot :
It will take 62.91 years for Kevin to make the amount $2500 to $7500 .
In the question ,
it is given that ,
the amount that Kevin deposited (P) in bank = $2500
the interest rate (r) = 1.75% ,
the compound interest is quarterly ,
So , n is = 4 .
let the time taken to earn $7500 be = x years ;
Substituting the values in the Amount formula for the Compound Interest ,
Amount = P(1 + r/n)ⁿˣ
7500 = 2500(1 + 0.0175/4[tex])^{4x}[/tex]
Simplifying further ,
we get ,
3 = (1.004375[tex])^{4x}[/tex]
After applying log both the sides ,
we get ,
log(3) = 4x*log(1.004375)
x = log(3)/(4*log(1.004375))
Simplifying further ,
we have ,
x = 62.91 years .
Therefore , the time taken is = 62.91 years
Learn more about Compound Interest here
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