A person invests 1000 dollars in a bank. The bank pays 7% interest compounded quarterly. To the nearest tenth of a year, how long must the person leave the money in the bank until it reaches 3400 dollars?

Solution

Solution

Time : 17.64

Solution steps

Translate the problem into an equation:

3400 = 1000 (1 + \frac{0.07}{4})^{4 t}

Solve for

t, 3400 = 1000 (1 + \frac{0.07}{4})^{4 t} : t = 17.64

Time : 17.64

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