Question

A person invests $1000 in a bank. The bank pays 6% interest compounded monthly. To the nearest tenth of a year, how long must the person leave the money in the bank until it reaches $3300

Answer 1

18 years, 4 months and 10 days.

Explanation:

Given that the person invests $ 1000 in an account with compound interest each month, with an interest rate of 6%, to determine how long the investment must maintain to reach $ 3,000, the following calculation must be performed:

3,000 = 1,000 (1 + 0.06 / 12) ^ Yx12

3,000 = 1,000 (1 + 0.06 / 12) ^ 18.36x12

3,000 = 3,000

Therefore, the person must keep his investment for a period of 18.36 years. Since 12 x 0.36 is equal to 4.32, the total investment time should be 18 years, 4 months and 10 days.