A certain investment grows at an annual interest rate of ...

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PS · Problem Solving

705-805

percent

A certain investment grows at an annual interest rate of 8%, compounded quarterly. Which of the following equations can be solved to find the number of years, x, that it would take for the investment to increase by a factor of 16?

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A

16 =

1.02^{x/4}

B

2 =

1.02^x

C

16 =

1.08^{4x}

D

2 =

1.02^{x/4}

E

\frac{1}{16}

=

1.02^{4x}

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