Question

Liam opened a savings account and deposited \$6000$6000dollar sign, 6000. The account earns 5\%5%5, percent in interest annually. He makes no further deposits and does not withdraw any money. In ttt years, he has \$8865$8865dollar sign, 8865 in this account.

Write an equation in terms of ttt that models the situation.

Answer 1

8865= 6000 * 1.05
`x^(ttt)`

Explanation:

if it is compound interest you multiply initial saving by 1.05 as this is and increase by 5% to the power of the number of years he has saved for.

8865= 6000 * 1.05
`x^(ttt)`

1.4775=1.05
`x^(ttt)`

to find ttt:

`log _(1.05)`
`1.4775= 8.0006=8`

thus ttt= 8 years