College Algebra

Question

Jimmy invests $20,000 in an account that pays 4.39 % compounded quarterly. How long (in years and months) will it take for his investment to reach $24,000 ? ____ years and ____ months (Round the answer for months up to the nearest multiple of three.)

Answer 1

A = P(1 + r/n)^nt

24,000 = 20,000(1 + .0439/4)^4t

1.2 = (1.0439)^4t

log 1.2 = log 1.0439^4t

log 1.2 = 4t log 1.0439

   log 1.2     = 4t

log 1.0439

4.24355 = 4t

1.061 years = t

1 year, .732 months = t

 

Answer 2

24000 = 20000(1 + 0.0439/4)^4t

1.2 = 1.010975^4t

ln 1.2 = 4t(ln 1.010975)

 

Can you solve for t and answer?