Answer: t is approximately 2 years
Explanation:
Lisa deposited an Initial amount of $6000 into the account. This means that the principal,
P = $6000
This amount was compounded annually This means that it was compounded once in a year. So
n = 1
The rate at which the principal was compounded is 5%. So
r = 5/100 = 0.05
It was compounded for a total of t years.
n = t
The total amount in the account at the end of t years is $8865. So
A= $8865
The formula for compound interest is
A = P(1+r/n)^nt
8865= 6000(1 + (0.05/1)^1×t
8865= 6000(1 + (0.05)^t
8865= 6000(1.05)^t
1.4775 = 1.05^t
t is approximately 2 years