How long will P2.5M amounts to P4.5M at 8% compounded quarterly? Problem By the conditions of a will, the sum of P2.5M is left to a girl to be held in a trust fund by her guardian until it amounts to P4.5M. When will the girl receive the money if the fund is invested at 8% compounded quarterly? A. 7 years C. 7.42 years B. 6.8 years D. 7.25 years Answer Key Click here to show or hide the answer key [ C ] Solution Click here to expand or collapse this section $F = P(1 + i)^n$ $4.5 = 2.5\left(1 + \dfrac{0.08}{4} \right)^{4t}$ $1.8 = 1.02^{4t}$ $\ln 1.8 = \ln 1.02^{4t}$ $\ln 1.8 = 4t \ln 1.02$ $t = \dfrac{\ln 1.8}{4 \ln 1.02}$ $t = 7.42 ~ \text{years}$ ← answer Tags future amount compounded interest Trust Fund Log in or register to post comments Book traversal links for How long will P2.5M amounts to P4.5M at 8% compounded quarterly? Compound Interest Up Annuities and Capitalized Cost