Maggie deposited 100.00 into a new savings account that earns 10% interest compounded monthly. How long will it take for the balance to grow to 212.00? Round your answer to the nearest month.

Solution

Solution

Time : 7.55

Solution steps

Translate the problem into an equation:

212 = 100 (1 + \frac{0.1}{12})^{12 t}

Solve for

t, 212 = 100 (1 + \frac{0.1}{12})^{12 t} : t = 7.55

Time : 7.55

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