Question

When interest is compounded quarterly (4 times a year) at an annual rate of 6%, the rate of interest for each quarter is 0.064\frac{0.06}{4}, and the number of times that interest is added in t years is 4t. After how many years will an investment of $100 compounded quarterly at 6% annually be worth at least$450? (Use the formula An=A0(1+rn)ntA_n=A_0\left(1+\frac{r}{n}\right)^{n t}.)

Solution

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Answered 2 years ago
Answered 2 years ago
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The goal of this task is to solve for the years tt needed for the acquired amount to reach at least An=$450A_n=\$450 with a principal amount of A0=$100A_0=\$100 with a rate of r=0.06r=0.06 interest compounded quarterly.

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