opal deposited 2925.90$ into a savings account with an interest rate of 3.9% compounded twice a year. about how long will it take for the account to be worth 6000$
Question
Answer:
Use the compound amount formula:A = P (1 + r/n)^( r/n )
Here,
A $6000 = $2925.90 ( 1 + 0.039/2 )^(2t). We must solve for t.
2.051 = ( 1 + 0.0195 )^(2t)
Take the natural log of both sides:
ln 2.051 = (2t) ln 1.0195 leads to (2t) ( 0.0193 ) = 0.7183
0.7183
Then 2t = -------------- = 37.219
0.0193
37.219
Finally, t = ------------- = 18.6 years
2
This is reasonable, because we're going from $2925.90 to more than twice that, or $6000, at the relatively low interest rate of 3.9%.
solved
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11 months ago
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