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Complete question :
How many years, to the nearest tenth, will be needed for $5000 to increase to $18000 at 3.0% annual interest compounded monthly
Answer:
Step-by-step explanation:
Initial amount (P) = 5000
Final amount (A) = 18000
Interest rate (r) = 3% = 0.03 compounded monthly
A = P(1 + r/n)^nt
n = number of compounding timea per period
18000 = 5000(1 + 0.03 / 12)^12t
18000 / 5000 = (1 + 0.0025)^12t
3.6 = (1 + 0.0025)^12t
3.6 = 1.0025^12t
Take the In of both sides
1.2809338 = 1.03t
t = 1.2809338 / 1.03