Problema Solution
How long would it take $2,800 to grow to $8,400 if the annual rate is 4.2% and interest in compounded monthly?
Answer provided by our tutors
We assume the time is t month
rate = 4.2%/12 = 0.35%
So the equation is
2800*(1+0.35%)^t = 8400
So
t = 314.4
So 314.4 month = 26.2 years
So the time is 26.2 years