|
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!)
Continued on the
next
page
|
The printing
and distribution and/or downloading of these lessons is strictly
prohibited. |
|
