Use the formula for the compound interest with n compoundings each year to solve this problem. How long to the nearest tenth of a year will it take 12,500 to grow to 20000 at 6.5% annual interest compouned quarterly?

7.3 years.

Step-by-step explanation:

We are asked to find the time taken for 12,500 to grow to 20000 at 6.5% annual interest compounded quarterly. We will use compound interest formula to solve our given problem.  

, where,

A = Final amount after t years,

P = Principal amount,

r = Annual interest rate in decimal form,

n = Number of times interest is compounded per year,

t = Time in years.

Upon substituting our given values in above formula, we will get:

Now we will take natural log of both sides of equation as:

Using property , we will get:

Upon rounding to nearest tenth of year, we will get:

Therefore, it will take approximately 7.3 years for 12,500 to grow to 20000.

you would need to know all the numbers that are on there

step-by-step explanation: