Question

An account earned interest of 5% per year. The beginning balance was $250. The equation t=log1.05E250 represents the situation, where t is the time in years and E is the ending balance.

Answer 1

3 years

Explanation:

The number of years that required for opening an account is shown below:

Given that

Opening balance = $250

ending balance = $289.41

t =
`log_(1.05) (E)/(250)`

Interest rate = 5%

Based on the above information, the number of years required is

`t = log_(1.05) (289.41)/(250)`

= 3 years

Hence, the number of years required to open an account is 3 years and the same is to be considered by using the above formula