It should be 5000=4000(1+0.08/4)^4n
so i'm just learning how to do these questions, and i'm not sure i'm doing it right.
Amy invests $4000 at 8%/a, compounded quarterly. How long will it take for the $4000 to grow to $5000?
is this the way you solve? am i leaving anything out?
remember that the growth formula is .
where n is the number of compoundings. All this thing saysn is that if we take what we originally had (1) and we take a smaller and smaller return, we'll get more and more compoundings. it's kind of nice to compare (when n=n') n=1, n=10, n=50, n=100, etc... Somethins going on there.
In your case the growth is being compounded quarterly ie n=4, but your don't nnow what n' equals so you gotta solve for it.