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21 July, 10:34

Crystal deposits $850 into an account that earns interest at 6% p. a compounded quarterly. How long will it take for her investment to grow to $1000? Show how you determined your answer.

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  1. 21 July, 11:32
    0
    1000=850 (1+0.06/4) ^ (4n)

    1000/850 = (1+0.06/4) ^ (4n)

    4n=log (1000/850) / log (1+0.06/4)

    N=2.8 years
  2. 21 July, 13:33
    0
    It would take about 9 months for her income to grow to $1000
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