Question

thomas want to save money for a vacation. Thomas invest $1,300 in account that pays an interest rate of 6.25% how many years will it take for the account to reach $19,000

Answer 1

the guy above was right but the plato answer is 44.24

Answer 2

44.2 years

Explanation:

If we assume the interest is compounded annually and the investment is a one-time deposit into the account, its value each year is multiplied by 1+6.25% = 1.0625. After n years, the value in the account will be ...

19000 = 1300·1.0625^n

Dividing by 1300 and taking logs, we have ...

log(19000/1300) = n·log(1.0625)

log(190/13)/log(1.0625) = n ≈ 44.24 . . . . years

It will take about 44.2 years for the account to reach $19,000.