Jeremiah invested 70,000 in an account paying an interest rate of 6.8% compounded daily. 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 99,000?

Solution

Jeremiah invested 70, 000 in an account paying an interest rate of 6.8% compounded daily. 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 99, 000?

Solution

Time : 5.1

Solution steps

Translate the problem into an equation:

99000 = 70000 (1 + \frac{0.068}{365})^{365 t}

Solve for

t, 99000 = 70000 (1 + \frac{0.068}{365})^{365 t} : t = 5.1

Time : 5.1

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