Complete the table for a savings account subject n compoundings yearly
[A=P(1+r/n) with an exponent nt]

amount invested is 12,500 number of compounding periods is 4 annual interest rate is 5.75% and accumulated amount is 20,000

I do not understand how to get the time t in years


Susan

Just plug in all of the other parameters and solve for t.

20000=12500(1+\frac{.0575}{4})^{4t}

Now, we solve for t. From here on out I am going to use fractions instead of decimals.

1+(.0575/4)=\frac{1623}{1600}.

20000=12500(\frac{1623}{1600})^{4t}

\frac{8}{5}=(\frac{1623}{1600})^{4t}

ln(\frac{8}{5})=4t\cdot\ln(\frac{1623}{1600})

Now, finish? Solve for t.