Question

Goran deposited $3000 into an account with a 10% annual interest rate, compounded quarterly. Assuming that no withdrawals are made, how long will ittake for the investment to grow to $3393?Do not round any intermediate computations, and round your answer to the nearest hundredth.

Answer 1

In order to calculate the amount of time needed, let's use the formula for compound interest:

$P=P_0\cdot(1+\frac{r}{n})^{nt}$

Where P is the final amount after t years, P0 is the initial amount, r is the interest rate