Answer:it will take 5 years
Step-by-step explanation:
Initial amount deposited into the account is $500 This means that the principal is
P = 500
It was compounded quarterly. This means that it was compounded 4 times in a year. So
n = 1
The rate at which the principal was compounded is 5.6%. So
r = 5.6/100 = 0.056
The formula for compound interest is
A = P(1+r/n)^nt
A = total amount in the account at the end of t years. A is already given as $750
Therefore,
750 = 500 (1+0.056/4)^4×t
750 = 500 (1+0.014)^4t
750 = 500 (1.014)^4t
(1.014)^4t = 750/500 = 1.5
Take root 1/4 of both sides
(1.014)^4t ×1/4 = 1.5^1/4
(1.014)^t = 1.107
t = 5 years
