Problema Solution
how many years will it take for 490 to grow to 1083.93 if its invested at 6 percent compound annually?
Answer provided by our tutors
P = 490 the principal amount
r = 0.06 or 6% annual rate of interest (as a decimal)
t = number of years the amount is deposited or borrowed for.
A = 1083.93 amount of money accumulated after t years, including interest.
n = 1 number of times the interest is compounded per year
A = P(1 + r/n)^(nt)
490(1 + 0.06/1)^(1t) = 1083.93
490*(1.06)^t = 1083.93 divide both sides by 490
(1.06)^t = 1083.93/490
t ln (1.06) = ln (1083.93/490)
t = ln (1083.93/490)/ln (1.06)
t = 13.63 years
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it will take 13.63 years for 490 to grow to 1083.93.