Question

Louis is saving money for a car, he invests $1,200 in an account that pays an interest rate of 7.5%. How many years will it take for the account to reach $14,000? Use formula

A= p (1 +r) ^t

Answer 1

33.970041 years

Explanation:

A = p(1+r)^t

14,000 = 1,200 (1+0.075)^t

14,000/1,200 = (1.075)^t

log(14,000/1,200) = t log (1.075)

t = log(14,000/1,200) / log(1.075)

= 33.970041 years