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20 July, 06:55

Jimmy invests $15,000 in an account that pays 8.90% compounded quarterly. How long (in years and months) will it take for his investment to reach $22,000?

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  1. 20 July, 10:37
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    22000=15000 (1+.089/4) ^4t

    22/15 = (1.02225) ^4t

    log (22/15) = 4tlog1.02225

    (log (22/15) / 4log1.02225) = t

    (.16633/.038228) = t

    t=4.35 years or 4 years and approximately 4 months
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