Question

A person invests 10000 dollars in a bank. The bank pays 6.5% interest compounded

annually. To the nearest tenth of a year, how long must the person leave the money
in the bank until it reaches 29500 dollars?

Answer 1

The person must leave the money in the bank for approximately 30.5 years to reach $29,500 with a 6.5% interest rate compounded annually.

Step-by-step explanation:

To find out how long it will take for the $10,000 to reach $29,500 with a 6.5% interest rate compounded annually, we can use the formula for compound interest:

3 = 1.065^t

t = log(3) / log(1.065)

Using a calculator, we find that t is approximately 30.5 years. Therefore, the person must leave the money in the bank for approximately 30.5 years to reach $29,500.

Answer 2

Answer: 3000 years

Step-by-step explanation:

Let y be the number of money and x be the number of years

So we have the equation

y= 6.5x + 10000

Now we put 29500 in the y

29500 = 6.5x + 10000

Subtracted 10000 from both sides

19500 = 6.5x

Divided both sides by 6.5

x = 3000 years