David invested 68,000 in an account paying an interest rate of 5.5% 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 93,000?

Solution

David invested 68, 000 in an account paying an interest rate of 5.5% 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 93, 000?

Solution

Time : 5.69

Solution steps

Translate the problem into an equation:

93000 = 68000 (1 + \frac{0.055}{365})^{365 t}

Solve for

t, 93000 = 68000 (1 + \frac{0.055}{365})^{365 t} : t = 5.69

Time : 5.69

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