If $2000 is invested at a rate of 12 percent per year, what is the principle after 5 years if the interest is compound quarterly? What is the principle afetr 5 years if the interest is compound quarterly?

Thanks to anyone who can solve.

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- Apr 29th 2008, 10:48 AMav8or91Logarithms help
If $2000 is invested at a rate of 12 percent per year, what is the principle after 5 years if the interest is compound quarterly? What is the principle afetr 5 years if the interest is compound quarterly?

Thanks to anyone who can solve. - Apr 29th 2008, 10:57 AMjames_bond
Is it $\displaystyle 2000\cdot 1.03^{20}=3612.22$? (There are $\displaystyle 5*4=20$ "compounds" with $\displaystyle 12/4=3 \%$.)

I'm not sure as there are no logarithms in it... - Apr 29th 2008, 12:40 PMav8or91
Doesnt the compund interest formula contain logarithms?

- Apr 29th 2008, 12:43 PMicemanfan
- Apr 30th 2008, 11:27 AMav8or91
Alright thanks for the reply.

I have one logarithm problem I cant figure out

Log2x^3= Log2(6-x) - Apr 30th 2008, 12:01 PMtopsquark
New questions go in new threads.

$\displaystyle log_2(x^3) = log_2(6 - x)$

$\displaystyle x^3 = 6 - x$

$\displaystyle x^3 + x - 6 = 0$

There are no "nice" solutions to this equation, so it isn't surprising that you haven't been able to solve it. Numerically I get x = 1.634365293.

-Dan