1 + 0.075/4

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So it will take about 7.14 years.
Answer by θ βяιαη θ
Recall your compound interest formula.
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Since the rate is 7.5%/year,[link widoczny dla zalogowanych], we have that r = 0.075. Also, we are compounding 4 times a year. So we have that n = 4. We are also given that A = 8500 and P = 5000. So we have:
8500 = 5000(1 + 0.075/4)^(4t)
==> 8500 = 5000(1.01875)^(4t)
==> 1.7 = 1.01875^(4t)
==> ln(1.7) = ln[1.01875^(4t)]
==> ln(1.7) * 4t*ln(1.01875)
==> 4t = ln(1.7)/ln(1.01875)
==> t = ln(1.7)/[4ln(1.01875)] ≈ 7.14
Forever Yours asked the following: Find the time required for an investment of 5000 dollars to grow to 8500 dollars at an interest rate of 7.5 pe?
Find the time required for an investment of 5000 dollars to grow to 8500 dollars at an interest rate of 7.5 percent per year,[link widoczny dla zalogowanych], compounded quarterly.
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I hope this helps!
A = P(1 + r/n)^(nt)