Harper invested 72,000 in an account paying an interest rate of 2% compounded monthly. 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 82,600?

Solution

Harper invested 72, 000 in an account paying an interest rate of 2% compounded monthly. 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 82, 600?

Solution

Time : 6.87

Solution steps

Translate the problem into an equation:

82600 = 72000 (1 + \frac{0.02}{12})^{12 t}

Solve for

t, 82600 = 72000 (1 + \frac{0.02}{12})^{12 t} : t = 6.87

Time : 6.87

Popular Examples

Jace invested 8,300 in an account paying an interest rate of 6.6% compounded continuously. Assuming no deposits or withdrawals are made, how much money, to the nearest dollar, would be in the account after 14 years?A number squared and multiplied by 5.Brody invested 2,800 in an account paying an interest rate of 2.7% compounded continuously. Assuming no deposits or withdrawals are made, how long would it take, to the nearest year, for the value of the account to reach 3,560?3 more than a number The sum of two numbers is 27. Half the larger number increased by three is same as the smaller number. Find the numbers.