A=$6000; p=$1000; interest is 12% compounded quarterly

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A=$6000; p=$1000; interest is 12% compounded quarterly

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2 weeks 2022-01-03T05:14:40+00:00 1 Answer 0 views 0

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    2022-01-03T05:15:58+00:00

    Answer:

    Step-by-step explanation:

    We would apply the formula for determining compound interest which is expressed as

    A = P(1+r/n)^nt

    Where

    A = total amount in the account at the end of t years

    r represents the interest rate.

    n represents the periodic interval at which it was compounded.

    P represents the principal or initial amount deposited

    From the information given,

    P = 1000

    r = 12% = 12/100 = 0.12

    n = 4 because it was compounded 4 times in a year.

    A = 6000

    Therefore,.

    6000 = 1000(1+0.12/4)^4 × t

    6000/1000 = (1 + 0.03)^4t

    6 = 1.03^4t

    Taking log of both sides of the equation, it becomes

    Log 6 = log 1.03^4t

    0.778 = 4tlog 1.03

    0.778 = 4t × 0.0128

    0.778 = 0.0512t

    t = 0.778/0.0512

    t = 15.2 years

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