A hospital administrator deposits 10, 000 into an account that earns 6% annual interest compounded monthly. In approximately how many years will the investment be worth 19, 000?

Solution

Solution

Time : 10.72

Solution steps

Translate the problem into an equation:

19000 = 10000 (1 + \frac{0.06}{12})^{12 t}

Solve for

t, 19000 = 10000 (1 + \frac{0.06}{12})^{12 t} : t = 10.72

Time : 10.72

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