Now that we know how to solve exponential equations, let's go back to money and populations and solve some harder problems.
How long will it take $3000 to grow to $8500 if it is invested in an account that earns 8% compounded quarterly?
Set it up:
initial amount = 3000
final amount = 8500
split factor = 1.02
( remember that, each quarter, $1.00 splits into $1.02! )
We are looking for time...
We'll need to get the number of splits, #, then adjust it to years.
That's about 13.15 years. (I divided by 4!)