Jimmy invests ​$20,000 in an account that pays ​10.23% compounded quarterly. How long​ (in years and​ months) will it take for his investment to reach ​$​25,000?

Answer 1

25000 = 20000(1+.1023/4)^4t

25000/20000 = (1.028075)^4t = 5/4 = 1.25

log1.25 to the base 1.028075 = 4t

t = .25log1.25 to the base 1.028075

= .25ln1.25/ln1.028075 = about 2 years and .1775 months

= about 2 years & 1/5 of a month