Question

8000 dollars is placed in an account with an annual interest rate of 7%. To the nearest tenth of a year, how long will it take for the account value to reach 53900 dollars?

Answer 1

273.48 tenths of years

Step-by-step explanation:

This is a Time Value of Money (TVM)First, convert the annual interest rate to a tenth of a year rate;

= 7% *(1/10) = 0.7%

Interest rate ; I/Y = 0.7%

Present value; PV = -8000

Future value ; FV = 53900

Recurring payment; PMT = 0 (since this is not an annuity)

then compute the duration; CPT N = 273.48 tenths of years