Problema Solution
A principal of $3700 is invested at 6.5% interest, compounded annually. How many years will it take to accumulate $6000 or more in the account?
Answer provided by our tutors
We are looking for a positive number n such that
3700*(1+0.065)^n >= 6000
Then we have
1.065^n >= 60/37~1.622 =====> ln(1.065^n)>=ln(1.622) ====>
n >= ln(1.622)/ln(1.065)~0.4834/0.063 ~7.67
Therefore, it will take 8 years to accumulate $6000 or more.
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