Question

3600 dollars is placed in an account with an annual interest rate of 5.5%. To the

nearest year, how long will it take for the account value to reach 7800 dollars?

1

Answer 1

Solution:

Answer: 14.44

Step-by-step explanation: The formula says

$$A=p(1+r)^t$$

A = 7800

P = 3600

R = 0.055

T = ?

$$7800=3600(1+0.055)^t$$

$$\frac{7800}{3600}=(1.055)^t$$

$$log(\frac{7800}{3600})=t\times log(1.055)$$

$$T =\frac{ log(\frac{7800}{3600})}{log(1.055)}$$

$$T = 14.44years$$

Answer: 14.44 years