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horsena [70]
3 years ago
7

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

Mathematics
2 answers:
vredina [299]3 years ago
7 0
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
notka56 [123]3 years ago
3 0
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

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