Question

A person invests 9500 dollars in a bank. The bank pays 6.25% interest

compounded daily. To the nearest tenth of a year, how long must the
person leave the money in the bank until it reaches 18700 dollars?
A = P(1 + -)nt
n

Answer 1

10.8 years

Explanation:

18700 = 9500(1 + 0.0625/365)^365t where t is the time in years.

(1 + 0.0625/365)^365t = 18700/9500

365t ln(1 + 0.0625/365) = ln 18700/9500

t = ln 18700/9500 / 365 ln(1 + 0.0625/365)

10.837

= 10.8 years.