Precalculus (6th Edition) Blitzer

Published by Pearson
ISBN 10: 0-13446-914-3
ISBN 13: 978-0-13446-914-0

Chapter 3 - Review Exercises - Page 514: 83


$7.3$ years

Work Step by Step

The formula for compound interest with $ n $ compoundings per year is given by : $ A= P(1+\dfrac{r}{n} )^{nt}$ Plug in the given data. $20,000=12,500 (1+\dfrac{0.065}{4} )^{4t}$ or, $1.6 =(1+0.016)^{4t}$ or, $1.6=(1.016)^{4t}$ Take log base 1.016 of each side. $\log_{1.016} 1.6=4t \implies t=7.3$ years
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