A man invests $2000 in an account that pays 6.5% interest per year, compounded quarterly.

(a) Find the amount after 2 years? (Round your answer to the nearest cent.)

$

(b) How long will it take for the investment to triple? (Round your answer to two decimal places.)

yr

The correct answer is a. $2275.28; b. 17.04 years

Step-by-step explanation:

Principal to be invested is $2000

Interest rate (r) per year is 6.5 quarterly.

Interest is calculated compoundly.

a. Time (t) for the investment is given to be 2 years.

Amount after two years is = Principal × where the value of n is 4.

⇒ A = 2000  ×

⇒ A = $2275.28.

b. Now the value of A is given to be triple the principal = $ (3 × 2000).

Therefore we need to find the value of t.

⇒ 3 × 2000 =  2000  ×

⇒ ㏑ 3 = 4t × ㏑ ( 1.01625)

⇒ t = 17.04

Therefore it would take 17.04 years for the principal to triple.

answer: 1000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000

step-by-step explanation: