Question

using the intrest formula, if you invest $2000 in the bank at an interest rate of 6% how many years will it take to have $3007.26 in the account?

Answer 1

Hi there:)

The formula is
A=p (1+r)^t
A future value 3007.26
P principle 2000
R interest rate 0.06
T time ?
To solve for t use this formula
T=log (A/p)÷log (1+r)
T=log(3,007.26÷2,000)÷log(1+0.06)
T=6.9 years round
T= 7 years

Hope it helps