contestada

Damian invested $880 in an account paying an interest rate of 5.2% compounded
annually. Assuming no deposits or withdrawals are made, how long would it take, to the nearest tenth of a year, for the value of the account to reach $1,290?

Respuesta :

DWRead

Answer:

Step-by-step explanation:

880×1.052^t = 1290

1.052^t = 1290/880 = 129/88

t ≅ 7.5 years

mhanifa

Answer:

  • 7.5 years

Step-by-step explanation:

Given:

  • Investment P = $880
  • Interest rate r = 5.2% = 0.052 times
  • Compound number n = 1 (annual)
  • Time t = ?
  • Final amount A = $1290

The equation is below, solve for t:

  • A = P(1 + r/)^(nt)
  • 1290 = 880(1 + 0.052)^t
  • 1.052^t = 1290/880
  • 1.052^t = 1.4659
  • t = log 1.4659 / log 1.052
  • t = 7.5 years (rounded)