Alice deposited 3,000.00 into a new savings account that earns 15% interest compounded monthly. How long will it take for the balance to grow to 4,965.00?Round your answer to the nearest month.

Solution

Alice deposited 3, 000.00 into a new savings account that earns 15% interest compounded monthly. How long will it take for the balance to grow to 4, 965.00?Round your answer to the nearest month.

Solution

Time : 3.38

Solution steps

Translate the problem into an equation:

4965 = 3000 (1 + \frac{0.15}{12})^{12 t}

Solve for

t, 4965 = 3000 (1 + \frac{0.15}{12})^{12 t} : t = 3.38

Time : 3.38

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