In how many years will Php 23,500 accumulate to Php 30,000 if invested at 5% compounded quarterly?

To determine how many years it will take for Php 23,500 to accumulate to Php 30,000 when invested at an interest rate of 5% compounded quarterly, we can use the **compound interest formula**:

\[
A = P \left(1 + \frac{r}{n}\right)^{nt}
\]

Where:
- \(A\) = the future value of the investment (Php 30,000)
- \(P\) = the principal (initial investment, Php 23,500)
- \(r\) = annual interest rate (5% or 0.05)
- \(n\) = the number of times the interest is compounded per year (quarterly, so \(n = 4\))
- \(t\) = the number of years

We are solving for \(t\), the time in years. First, let's rearrange the formula to solve for \(t\):

\[
t = \frac{\log\left(\frac{A}{P}\right)}{n \cdot \log\left(1 + \frac{r}{n}\right)}
\]

Now, let's plug in the values:

\[
t = \frac{\log\left(\frac{30,000}{23,500}\right)}{4 \cdot \log\left(1 + \frac{0.05}{4}\right)}
\]

### Step-by-step calculation:
1. \(\frac{30,000}{23,500} = 1.2766\)
2. \(\frac{0.05}{4} = 0.0125\), so \(1 + 0.0125 = 1.0125\)
3. \(\log(1.2766) = 0.1064\)
4. \(\log(1.0125) = 0.0054\)

Now, substitute these values into the equation:

\[
t = \frac{0.1064}{4 \times 0.0054} = \frac{0.1064}{0.0216} = 4.93 \text{ years}
\]

Thus, it will take approximately **4.93 years** for Php 23,500 to accumulate to Php 30,000 at 5% compounded quarterly.

Would you like further details or have any questions?

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Here are 5 related questions to consider:
1. How would the time change if the interest rate were 6% instead of 5%?
2. What would be the accumulated amount after 3 years with the same conditions?
3. How does compound interest compare to simple interest in this scenario?
4. If interest were compounded monthly instead of quarterly, how would the time change?
5. What would the required principal be to reach Php 30,000 in 3 years at 5% interest?

**Tip:** Compounding more frequently (e.g., quarterly vs. annually) leads to a faster accumulation of interest!

Discover how long it takes for Php 23,500 to accumulate to Php 30,000 when invested at 5% interest compounded quarterly. Learn to use the compound interest formula and logarithmic calculations in this step-by-step guide. Suitable for high school students in Grades 10-12.

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