Question

A person invests 9500 dollars in a bank. The bank pays 5% interest compounded annually. To the nearest tenth of a year, how long must the person leave the money in the bank until it reaches 13200 dollars?

Answer 1

6.7

Explanation:

Answer 2

6.58 years

Explanation:

Step one:

Given data

Principal=$9500

rate= 5%= 0.05

Final amount= $13200

Required:

The time t

Step two

The expression for the compound interest is

`A= p(1+r)^t`

t = ln(A/P) / r.

substitute

t = ln(13200/9500) /0.05

t= ln(1.39)/0.05

t=0.329/0.05

t=6.58 years