Problema Solution
How long would it take $3,400 to grow to $9,600 if the annual rate is 3.5% and interest is compounded monthly?
Answer provided by our tutors
use the formula
A = P(1 + r/n)nt
where A is the accumulated interest, P is the principal or original amount, r is the rate, n is the number of times it is compounded monthly, and t is the number of years
A = 9600, P = 3400, r = .035, n = 12
9600 = 3400(1 + .035/12)12t
9600 = 3400(1.0028)12t
2.8235 = 1.002812t
ln(2.8325) = 12t*ln(1.0028)
371.2286 = 12t
30.936 = t
it will take approximately 31 years
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