I'm doing a compound interest problem and I wanted to know if I am doing it correctly. The problem is
How long will it take for $1,000 to grow to $5,000 at an interest rate of 3.5% if interest is compounded
For part a) I used the formula A = P(1 + r/n)^nt
5,000 = 1,000( 1 + .035/4)^4t
5 = (1.00875)^4t
ln5 = 4t ln1.00875
ln5 / 4ln1.00875 = T
Did I do it correctly? Perhaps i'm not putting it into the graphing calculator correctly but I keep getting the wrong answer compared to the answer section of the book. If I did do it correctly, can someone let me know what is the correct way to punch that into the calculator? I have a a Ti-83 graphing calculator.
For part b) I used the continuous forumula of A = Pe^rt
5,000 = 1,000e^.035t
5 = e^.035t
ln5 = .035t
ln5 / .035 = t
Did I do that correctly?
Thanks for any help