Question

Thomas invests $500 in a bank cd. The interest is 2 and it is compounded quarterly. How long will it take before his investment reaches $1000.
A. 30
B. 25
C. 40
D. 35

Answer 1

compounded quarterly means that

4*2%(interest)=8%(for one time) converting to dollar it will be:

$500-100%. ?=$40

? - 8%. now we need $500 to reach $1000 so $40*?=500

?=12.5(answer)

Here you go... Goodluck,