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A person invests 6000 dollars in a bank. The bank pays 6.5% interest compounded semi-annually. To the , how long must the person leave the money in the bank until it reaches 15100 dollars?

Sagot :

Answer:

14.43 years

Step-by-step explanation:

FV = PV (1+i)^n            

    FV = future value = 15100     PV = present value = 6000

     i = period interest in decimal  = .065/2 = =.0325

     n = periods = the question

15100 = 6000(1+.0325)^n

solve for n = 28.86 periods     or  14.43 years    (each period is 6 mos)

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