Question

If you depoit 4000 in to an account paying 9% annual interet compounded monthly how long until there i 10000 in the account

Answer 1

To find out how long it will take for the balance in the account to reach $10,000, you can use the following formula:

n = log(10000 / 4000) / log(1 + (0.09 / 12))

This formula calculates the number of periods (in this case, months) required for the balance to grow from $4,000 to $10,000 at a 9% annual interest rate compounded monthly.

Plugging in the values, we get:

n = log(10000 / 4000) / log(1 + (0.09 / 12))

= log(2.5) / log(1.0075)

= 0.964 / 0.0075

= 128.53

So it would take approximately 128 months, or just over 10 years, for the balance in the account to reach $10,000.

Note: This is just an approximation and the actual time required may vary slightly due to the way that the interest is compounded.