Answer:
The time required to get a total amount of $ 12,600.00 from compound interest on a principal of $9000 at an interest rate of 4.75% per year and compounded 4 times per year is 7.1 years.
Step-by-step explanation:
Given
Principle P = 9000 dollars
Rate r = 4.75% = 0.0475
Total Amount A = 12600 dollars
compounded quarterly n = 4
To determine:
Time t = ?
Using the equation
[tex]A\:=\:P\left(1\:+\:\frac{r}{n}\right)^{nt}[/tex]
solving the equation for 't'
t = ln(A/P) / n[ln(1 + r/n)]
t = ln(12,600.00/9,000.00) / ( 4 × [ln(1 + 0.011875/4)] )
t = 7.1 years
Therefore, the time required to get a total amount of $ 12,600.00 from compound interest on a principal of $9000 at an interest rate of 4.75% per year and compounded 4 times per year is 7.1 years.
