Question

A person invests 8000 dollars in a bank. The bank pays 6.25% interest compounded daily. To the nearest tenth of a year, how long must the person leave the money in the bank until it reaches 10800 dollars

Answer 1

4.8 years

Explanation:

10 800 = 8000 e^(i t) i = decimal interest per year t = years

10800/8000 = e^(.0625 t) ln both sides

.300 = .0625 t

t = 4.8 years