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How long will it take for a \$7000 investment to grow to \$8344 at an annual rate of 4.8% , compounded monthly? Assume that no withdrawals are made.Do not round any intermediate computations, and round your answer to the nearest hundredth.

Solution

How long will it take for a $7000 investment to grow to $8344 at an annual rate of 4.8% , compounded monthly? Assume that no withdrawals are made.Do not round any intermediate computations, and round your answer to the nearest hundredth.

Solution

Time : 3.67

Solution steps

Translate the problem into an equation:

8344 = 7000 (1 + \frac{0.048}{12})^{12 t}

Solve for

t, 8344 = 7000 (1 + \frac{0.048}{12})^{12 t} : t = 3.67

Time : 3.67

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