You invest $200 at 7% per annum compounded quarterly. How long will it take for your balance to exceed $300? (Round your answer up to the next quarter.)
A) 6 quarters
B) 18 quarters
C) 24 quarters
D) 23 quarters
E) 13 quarters

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt). Here, P = $200, r = 0.07, n = 4, and A = $300. Solving for t, we find it takes approximately 5.75 years, or 23 quarters, to exceed $300. Rounding up gives 24 quarters.

You Invest $200 at 7% Per Annum Compounded Quarterly