Sophie invested 420 in an account paying an interest rate of 1.6% compounded monthly. Assuming no deposits or withdrawals are made, how long would it take, to the nearest year, for the value of the account to reach 570?

Solution

Solution

Time : 19.1

Solution steps

Translate the problem into an equation:

570 = 420 (1 + \frac{0.016}{12})^{12 t}

Solve for

t, 570 = 420 (1 + \frac{0.016}{12})^{12 t} : t = 19.1

Time : 19.1

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