Mai deposited 6000 into an account with a 5% annual interest rate, compounded semiannually. Assuming that no withdrawals are made, how long will it take for the investment to grow to 14,238?

Solution

Mai deposited 6000 into an account with a 5% annual interest rate, compounded semiannually. Assuming that no withdrawals are made, how long will it take for the investment to grow to 14, 238?

Solution

Time : 17.5

Solution steps

Translate the problem into an equation:

14238 = 6000 (1 + \frac{0.05}{2})^{2 t}

Solve for

t, 14238 = 6000 (1 + \frac{0.05}{2})^{2 t} : t = 17.5

Time : 17.5

Popular Examples

The sum of twice a number and five is four more than the number. What is the number?:(10 Points)Brody opened a savings account and deposited 300.00 as principal. The account earns 13% interest, compounded quarterly. How much interest will he earn after 4 years?The diagonal of a square is 10sqrt(2). What is the length of each side of the square?Nine more than the product of a number and 2 is equal to 4.Madison invests money in an account paying a simple interest of 3.2% per year. If she invests 160 and no money will be added or removed from the investment, how much will she have in one year, in dollars and cents?