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29 March, 09:44

Approximately how many years would it take for a $10,000 investment, with an 8% interest per annum, to reach $14,800 if the interest is compounded quarterly?

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  1. 29 March, 12:05
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    You would do:

    t = time in years

    14,800 = 10,000 (1+0.08/4) ^4t

    1.48 = 1.02^4t

    log_1.02 (1.48) / 4 = t

    ((log 1.48) / (log 1.02)) / 4 = t

    t ~ 4,949 years
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