Question

David invested $220 in a savings account that offers a 3% return on the investment. The value of

____ years David's investment will be at least $400 after a period of years.
Hint: Use the formula A = P(1 + r)t, where A is the amount after t years, P is the amount invested, r is the rate of interest, and t is the time period. Use a calculator to compute the answer, and round it off to the nearest year.

Answer 1

20 years

Explanation:

Plato

Answer 2

20 years

Explanation:

Using the formula; A = P(1 + r)^t

We can plug in the known to find t

400 = 220(1.03)^t

then solve for t;

1.818 = 1.03^t

Introducing In

In 1.818 = t × In (1.03)

t = 20.225

t = 20 years to the nearest year