Elijah invested 610 in an account paying an interest rate of 4.1% compounded annually. Assuming no deposits or withdrawals are made, how long would it take, to the nearest year, for the value of the account to reach 900?

Soluzione

El ijah in v es t e d 610 in an a cco u n t p a y in g an in t eres t r a t e o f 4.1% co m p o u n d e d ann u a ll y . A ss u min g n o d e p os i t s or w i t h d r a w a l s a re ma d e, h o w l o n g w o u l d i t t ak e, t o t h e n e a res t ye a r, f or t h e v a l u e o f t h e a cco u n t t o re a c h 900 ?

Time : 9.68

Fasi della soluzione

Translate the problem into an equation:

900 = 610 (1 + \frac{0.041}{1})^{1 \cdot t}

Risolvi per

t, 900 = 610 (1 + \frac{0.041}{1})^{1 \cdot t} : t = 9.68

Time : 9.68