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1 vote
A person invests 10000 dollars in a bank. The bank pays 4.75% interest compounded semi-annually. To the nearest tenth of a year, how long must the person leave the money in the bank until it reaches 19200 dollars?

User Rchacko
by
4.8k points

2 Answers

7 votes

Answer: 13.9

(Not-rounded: 13.89561)

Explanation:

A=19200P=10000r=0.0475t=?

n=2\text{ (semi-annually)}

n=2 (semi-annually)

19200=10000(1+\frac{0.0475}{2})^{2t}

19200=10000(1+

2

0.0475

)

2t

19200=10000(1.02375)^{2t}

19200=10000(1.02375)

2t

\frac{19200}{10000}=\frac{10000(1.02375)^{2t}}{10000}

10000

19200

=

10000

10000(1.02375)

2t

1.92=(1.02375)^{2t}

1.92=(1.02375)

2t

\log(1.92)=\log((1.02375)^{2t})

log(1.92)=log((1.02375)

2t

)

\log(1.92)=2t\log(1.02375)

log(1.92)=2tlog(1.02375)

\frac{\log(1.92)}{2\log(1.02375)}=\frac{2t\log(1.02375)}{2\log(1.02375)}

2log(1.02375)

log(1.92)

=

2log(1.02375)

2tlog(1.02375)

t=\frac{0.2833012}{0.0203878}

t=

0.0203878

0.2833012

User MrSolarius
by
5.2k points
6 votes

Explanation:

i think it should be 2-3 months

User Illegal Operator
by
5.1k points