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D Take a Test-Alexis Gregory Google Chrome https://www.mathxl.com/Student/PlayerTest.aspx?testld 14295 28458 centerwin yes Fall16 College Algebra Trigsted 3e (1) Quiz: Quiz 4 (5.1-5.5) This Question: 1 pt 4 8 of 20 (6 complete) Jimmy invests $18,000 in an account that pays 465% compounded quarterly. How long (in years and months will it take for his investment to reach s24000? years and months (Round the answer for months up to the nearest multiple of three.) Enter your answer in each of the answer boxes.

Explanation / Answer

We can use here,

Compound Interest Formula: A=P(1+i)^n, P=initial investment, i=interest rate per period, A=amount after n periods.
For given problem:
period=quarter
i=0.0465/4=0.011625
P=18000

A=24000
..
24000=18000(1+0.011625)^n
24000/18000=(1.011625)^n
take log of both sides
log(23/20)=nlog(1.0106)
n=[log(23/20)]/log(1.0106)
using calculator
n24.89 quarters or 6 yrs or 75 months

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