Jimmy invests ​$18000 in an account that pays 9.11​% compounded quarterly. How long​ (in years and​ months) will it take for his investment to reach ​$23000​?

Answer 1

23000 = 18000(1+.0911/4)^4t solve for t = how long for 18K to become 23K K=$1000

23/18 = (1.022775)^4t

4t = log(23/18) to base 1.022775 = ln(23/18)/ln1.022775

t =about 10.885/4

t = about 2.721 years

= 2 years 8.655 months