Question

Susanna deposits $400 in a savings account with an interest rate of 3% compounded annually. What equation could Susanna use to calculate how many years it will take for the value of the account to reach $600?

The equation would be:

$600 = $400(1 + 0.03)^x

Where:
c = $600 (the final amount)
A = $400 (the initial amount)
b = 1 + 0.03 (1 plus the interest rate)
x = the number of years

Answer 1

To calculate how many years it will take for the value of the account to reach $600, Susanna can use the equation $600 = $400(1 + 0.03)^x. Solve for x to find that it will take approximately 10.57 years for the value of the account to reach $600.

Step-by-step explanation:

To calculate how many years it will take for the value of the account to reach $600, Susanna can use the equation:

$600 = $400(1 + 0.03)x

Where:

To solve for x, you can take the logarithm of both sides of the equation:

x = log1.03(600/400)

Using a calculator, you can find that x ≈ 10.57. Therefore, it will take approximately 10.57 years for the value of the account to reach $600.