Answer: 8.46 years
Explanation:
To find out how long it will take for the account value to reach $25,300, you would need to use the formula:
A = P(1 + r/n)^(nt)
Where:
A is the final amount (25,300)
P is the initial amount (3,100)
r is the annual interest rate (7.25%)
n is the number of times the interest is compounded per year
t is the number of years
In this case, we can assume that the interest is compounded annually, so n=1.
We can then plug in the values and solve for t:
25,300 = 3,100(1 + 0.0725)^t
t = (ln(25,300/3,100)) / (ln(1 + 0.0725))
t ≈ 8.46 years
So it would take approximately 8.46 years, rounded to the nearest year.