A person invests 1000 dollars in a bank. The bank pays 5.75% interest compounded monthly. To the nearest tenth of a year, how long must the person leave the money in the bank until it reaches 2900 dollars?

Solution

Solution

Time : 18.56

Solution steps

Translate the problem into an equation:

2900 = 1000 (1 + \frac{0.0575}{12})^{12 t}

Solve for

t, 2900 = 1000 (1 + \frac{0.0575}{12})^{12 t} : t = 18.56

Time : 18.56

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