Answer:
t= 3.322 years
Step-by-step explanation:
investment made= $5000 (Principal)
amount obtained after a specific time= $6400
rate %= 7.5% per year compounded quarterly which means
r= 7.5/(100*4)= 0.01875
time = 4t ( compounded quarterly)
we know that Amount obtained is given by
[tex]A= P(1+r)^{4t}[/tex]
[tex]6400= 5000(1+0.01875)^{4t}[/tex]
[tex](1.01875)^{4t}=1.28[/tex]
taking log on both sides and solving we get
t= 3.322 years
hence my answer t= 3.322 years
