Kevin opened a savings account with Texas National Bank. His account has an APR of 1.75% compounded quarterly. If Kevin opens his account with $2500, how long will it take for the account to earn $7500?

Question

Mathematics

Byron Davenport

6 May, 08:29

Kevin opened a savings account with Texas National Bank. His account has an APR of 1.75% compounded quarterly. If Kevin opens his account with $2500, how long will it take for the account to earn $7500?

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Answers (1)

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Naima Hendricks · Answer 1

it will take 1.7 years

Step-by-step explanation:

APR = 1.25%

Opening balance = X = $2,500

Total earned balance = Y=$7,500

Required time = Z

Therefore;

Y = X*APR*Z

Z = Y / (X*APR)

Z = 7500 / (2500*1.25%)

Z = 1.7 years