Question

Jordan invested $8,500 in an account paying an interest rate of 4.1% compounded daily. Assuming no deposits or withdrawals are made, how long would it take, to the nearest year, for the value of the account to reach $13,070?

Answer 1

52 days

Explanation:

if compounding daily we can see what 1 year accumulates using the function

360 / interest rate = 360/4.1 = 87.8048780488 = 87.80 per day

We can use inverse of the balance profit to use the exact amount difference to then divide into the date of withdrawal

$13070- 8500 = 4570

4570/ 87.8048780488 = 52.04 = 52 days.