Maggie deposited 100.00 into a new savings account that earns 10% interest compounded monthly. How long will it take for the balance to grow to 212.00? Round your answer to the nearest month.

Solution

Solution

Time : 7.55

Solution steps

Translate the problem into an equation:

212 = 100 (1 + \frac{0.1}{12})^{12 t}

Solve for

t, 212 = 100 (1 + \frac{0.1}{12})^{12 t} : t = 7.55

Time : 7.55

Popular Examples

The diameter of a circular watch face is 3 centimeters. Find the area of the watch face.At the sewing store, Marie bought a bag of mixed buttons. The bag included 76 buttons, of which 50% were large. How many large buttons did Marie get?Isabella inherited some money from her grandfather and put it in a bank account that earns 15% interest compounded quarterly. After 2 years, Isabella had 500.00 in the bank account. How much interest did she earn?If 10,000 is invested at 6% annual interest compounded yearly, what is the account balance after 4 years, assuming no additional deposits or withdrawals are made?Suppose an investment earns 3.5% interest compounded continuously. Find the future value of a 4600 investment after 22 years. Round your answer to the nearest cent, if necessary.