A man invests $5000 in an account that pays 8.5% interest per year, compounded quarterly

Question

Mathematics

Deangelo

Yesterday, 23:29

A man invests $5000 in an account that pays 8.5% interest per year, compounded quarterly

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Answers (2)

Know the Answer?

Kiana Benjamin · Answer 1

Oh this is easy

5,000x. 085=425

That is the amount he made in the year from intrest

Now cut that into a 4th

106.25

He makes 106.25 quarterly

Kathryn Duffy · Answer 2

5000 (1+.085/4) ^n=1000

to find n use log:

1.02125^n

N X log1.02125

when computed=32.9

round to 33 quarters compounded

33/4

equals to 8 years 3 months