Question

Lisa opened a savings account and deposited $6000. The account earns %5 interest annually. She makes no further deposits and does not withdraw any money. In t years, she has $8865, in this account.

Answer 1

6000*(1.05)^t=8865

Explanation:

Answer 2

The time t is
`9.55\ years`

Explanation:

we know that

The simple interest formula is equal to

`A=P(1+rt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=t\ years\\ P=\$6,000\\ A=\$8,865\\r=0.05`

substitute in the formula above and solve for t

`8,865=6,000(1+0.05t)`

`(8,865/6,000)=(1+0.05t)`

`0.05t=(8,865/6,000)-1`

`t=[(8,865/6,000)-1]/0.05`

`t=9.55\ years`