A person invests 3500 dollars in a bank. The bank pays 4% interest compounded quarterly. To the nearest tenth of a year, how long must the person leave the money in the bank until it reaches 5400 dollars?

Solution

Solution

Time : 10.9

Solution steps

Translate the problem into an equation:

5400 = 3500 (1 + \frac{0.04}{4})^{4 t}

Solve for

t, 5400 = 3500 (1 + \frac{0.04}{4})^{4 t} : t = 10.9

Time : 10.9

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