Julia invested 17,000 in an account paying an interest rate of 2.4% compounded daily. Assuming no deposits or withdrawals are made, how long would it take, to the nearest tenth of a year, for the value of the account to reach 21,400?

Solution

Julia invested 17, 000 in an account paying an interest rate of 2.4% compounded daily. Assuming no deposits or withdrawals are made, how long would it take, to the nearest tenth of a year, for the value of the account to reach 21, 400?

Solution

Time : 9.59

Solution steps

Translate the problem into an equation:

21400 = 17000 (1 + \frac{0.024}{365})^{365 t}

Solve for

t, 21400 = 17000 (1 + \frac{0.024}{365})^{365 t} : t = 9.59

Time : 9.59

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