Answer:
Explanation:
We can use the formula for compound interest to solve this problem:
A = P(1 + r/n)^(nt)
where:
A = final amount
P = principal amount (initial investment)
r = annual interest rate (as a decimal)
n = number of times the interest is compounded per year
t = number of years
Plugging in the given values, we have:
5960 = 5000(1 + 0.048/12)^(12t)
Dividing both sides by 5000, we get:
1.192 = (1 + 0.048/12)^(12t)
Taking the natural logarithm of both sides, we get:
ln(1.192) = ln[(1 + 0.048/12)^(12t)]
Using the property of logarithms that ln(a^b) = b ln(a), we can simplify the right side:
ln(1.192) = 12t ln(1 + 0.048/12)
Dividing both sides by 12 ln(1 + 0.048/12), we get:
t = ln(1.192) / [12 ln(1 + 0.048/12)]
t ≈ 2.55
Therefore, it will take about 2.55 years (or 2 years and 7 months) for the investment to grow to $5960.
Hope that helps :)