How quickly will $700 grow to $2,000 if interest is 8% compounded quarterly? Round your answer to two decimal places, if necessary.
A) in 13.00 years
B) in 13.15 years
C) in 13.20 years
D) in 13.25 years

Question

Quizplus · Accepted Answer

Using the formula for compound interest, $A = P(1 + \frac{r}{n})^{nt}$, where $A$ is the amount, $P$ is the principal, $r$ is the rate, $n$ is the number of times interest is compounded per year, and $t$ is the time in years. Solving for $t$ gives approximately 13.25 years.

How Quickly Will $700 Grow to $2,000 If Interest Is