Answer:
4.9 years
Step-by-step explanation:
Future value is the sum of amount invested and its compounded interest for a specific period of time and on a specific interest rate.
Investment = Present value = $9,500
Future value = $12,600
To find the numbers of years we will use following formula
Future value = Present value x ( 1 + r )^n
r = interest rate = 5.75%
n = number of periods = ?
Placing values in the formula
$12,600 = $9,500 x ( 1 + 5.75%/4 )^n
$12,600 / $9,500 = 1.014375^n
1.3263 = 1.014375^n
Log 1.3263 = n log 1.014375
n = Log 1.3263 / log 1.014375
n = 19.7856 Quarters
n = 4.9 years
