A person invests 8500 dollars in a bank. The bank pays 6% interest compounded semi-annually. To the nearest tenth of a year, how long must the person leave the money in the bank until it reaches 15500 dollars?

Solution

Solution

Time : 10.16

Solution steps

Translate the problem into an equation:

15500 = 8500 (1 + \frac{0.06}{2})^{2 t}

Solve for

t, 15500 = 8500 (1 + \frac{0.06}{2})^{2 t} : t = 10.16

Time : 10.16

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