A person invests 5000 dollars in a bank. The bank pays 5% interest compounded monthly. To the nearest tenth of a year, how long must the person leave the money in the bank until it reaches 10500 dollars?

Solution

Solution

Time : 14.87

Solution steps

Translate the problem into an equation:

10500 = 5000 (1 + \frac{0.05}{12})^{12 t}

Solve for

t, 10500 = 5000 (1 + \frac{0.05}{12})^{12 t} : t = 14.87

Time : 14.87

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