A person invests 9500 dollars in a bank. The bank pays 4.5% interest compounded quarterly. To the nearest tenth of a year, how long must the person leave the money in the bank until it reaches 22100 dollars?

Solution

Solution

Time : 18.87

Solution steps

Translate the problem into an equation:

22100 = 9500 (1 + \frac{0.045}{4})^{4 t}

Solve for

t, 22100 = 9500 (1 + \frac{0.045}{4})^{4 t} : t = 18.87

Time : 18.87

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