Benjamin invested 39,000 in an account paying an interest rate of 2.1% 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 54,200?

Solution

Benjamin invested 39, 000 in an account paying an interest rate of 2.1% 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 54, 200?

Solution

Time : 15.67

Solution steps

Translate the problem into an equation:

54200 = 39000 (1 + \frac{0.021}{365})^{365 t}

Solve for

t, 54200 = 39000 (1 + \frac{0.021}{365})^{365 t} : t = 15.67

Time : 15.67

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