Answered

Discover how IDNLearn.com can help you learn and grow with its extensive Q&A platform. Our platform is designed to provide reliable and thorough answers to all your questions, no matter the topic.

A person invests 7000 dollars in a bank. The bank pays 5.5% interest compounded
monthly. To the nearest tenth of a year, how long must the person leave the money
in the bank until it reaches 13200 dollars?

Sagot :

Samuelonum1idn

The time required to get a total amount of $13,200.00 with compounded interest on a principal of $7,000.00 at an interest rate of 5.5% per year and compounded 12 times per year is 11.559 years. (about 11 years 7 months)

Answer:

t = 11.559 years

Compound Interest

Given Data

  • Principal P= $7000
  • Rate r= 5.5%
  • Final Amount A = $13200
  • Time t = ??

(about 11 years 7 months)

Calculation Steps:

First, convert R as a percent to r as a decimal

r = R/100

r = 5.5/100

r = 0.055 per year,

Then, solve the equation for t

t = ln(A/P) / n[ln(1 + r/n)]

t = ln(13,200.00/7,000.00) / ( 12 × [ln(1 + 0.055/12)] )

t = ln(13,200.00/7,000.00) / ( 12 × [ln(1 + 0.0045833333333333)] )

t = 11.559 years

Learn more about compound interest here:

https://brainly.com/question/24924853

We appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. IDNLearn.com provides the best answers to your questions. Thank you for visiting, and come back soon for more helpful information.