Answer:
40.2 years
Step-by-step explanation:
Use the compound amount formula A = P(1 + r/n)^(nt), in which n represents the number of compounding periods per year. In this case n = 4. Solve the following equation for t (years):
$10,000 = $2,000(1 + 0.04/4)^(4t):
This is equivalent to
5 = 1.01^(4t). Taking the natural logarithm of both sides, we get:
ln 5 = 4t·㏑ 1.01, or
ln 5 1.609
-------------- = t = -------------- = 40.2 years
4·ln 1.01 4(0.010)
