Damian invested 880 in an account paying an interest rate of 5.2% compounded annually. Assuming no deposits or withdrawals are made, how long would it take, to the nearest tenth of a year, for the value of the account to reach 1,290?

Solution

Damian invested 880 in an account paying an interest rate of 5.2% compounded annually. Assuming no deposits or withdrawals are made, how long would it take, to the nearest tenth of a year, for the value of the account to reach 1, 290?

Solution

Time : 7.54

Solution steps

Translate the problem into an equation:

1290 = 880 (1 + \frac{0.052}{1})^{1 \cdot t}

Solve for

t, 1290 = 880 (1 + \frac{0.052}{1})^{1 \cdot t} : t = 7.54

Time : 7.54

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