IB Mathematical Studies, Compound Interest, time period
The general compounding formula is:
Where F is the future value of the investment (=$20,000), P the principal (=$12,000), r is the interest rate per compound period (
) and n is the number of compounding periods (unknown in our case).
(using solver or graph)
The answer is approximately 41 quarters.
The guidelines for doing this exercise directly to GDC Casio FX-9860 is
TVM -> F2: Compound Interest -> I%=5, PV=12000, FV=-20000, P/Y=4, C/Y=4 and then press n and get the same result (=41.12).
Hope these help!!