Question

Kevin opened a savings account with Texas National Bank. His account has an APR of 1.75% compounded quarterly. If Kevin opens his account with $2500, how long will it take for the account to earn $7500?

Answer 1

Answer:

it will take 1.7 years

Step-by-step explanation:

APR  = 1.25%

Opening balance =X= $2,500

Total earned balance =Y=$7,500

Required time =Z

Therefore;

Y = X*APR*Z

Z = Y / (X*APR)

Z = 7500 / (2500*1.25%)

Z = 1.7 years