Question

A person invests 6000 dollars in a bank. The bank pays 6.5% interest compounded semi-annually. To the , how long must the person leave the money in the bank until it reaches 15100 dollars?

Answer 1

14.43 years

Explanation:

FV = PV (1+i)^n

FV = future value = 15100 PV = present value = 6000

i = period interest in decimal = .065/2 = =.0325

n = periods = the question

15100 = 6000(1+.0325)^n

solve for n = 28.86 periods or 14.43 years (each period is 6 mos)