Edward deposited 2,000.00 into a new savings account that earns 15% interest compounded monthly. How long will it take for the balance to grow to 6,961.00?Round your answer to the nearest month.

Solution

Edward deposited 2, 000.00 into a new savings account that earns 15% interest compounded monthly. How long will it take for the balance to grow to 6, 961.00?Round your answer to the nearest month.

Solution

Time : 8.37

Solution steps

Translate the problem into an equation:

6961 = 2000 (1 + \frac{0.15}{12})^{12 t}

Solve for

t, 6961 = 2000 (1 + \frac{0.15}{12})^{12 t} : t = 8.37

Time : 8.37

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