Answer:
43.407 years
Step-by-step explanation:
Zoe invest $600 in college savings account. The account earns 5.7% interest compounded quarterly. How many years will it take for Zoe's account to reach $7,000?
We are asked to find time t in a compound interest formula
The formula is given as:
t = log(A/P) / n[log(1 + r/n)]
A = Total amount = $7000
P = Principal = $600
n = number of times interest is compounded = Quarterly =4
r = Interest rate = 5.7% = 0.057
Hence,
t = log(7000/600) /4[log (1 + 0.057/4)]
t = 43.407 years
