A person invests 4000 dollars in a bank. The bank pays 5.5% interest compounded annually. To the nearest tenth of a year, how long must the person leave the money in the bank until it reaches 5600 dollars?

Solution

Solution

Time : 6.28

Solution steps

Translate the problem into an equation:

5600 = 4000 (1 + \frac{0.055}{1})^{1 \cdot t}

Solve for

t, 5600 = 4000 (1 + \frac{0.055}{1})^{1 \cdot t} : t = 6.28

Time : 6.28

Popular Examples

Mia invested 640 in an account paying an interest rate of 6.7% compounded continuously. Assuming no deposits or withdrawals are made, how long would it take, to the nearest year, for the value of the account to reach 940?Twelve more than 6 times a number is 8.Three consecutive integers sum to 234. What is the least of these integers?you invest 4000 dollars in an account to save for college. It pays 4.5% annual interest compounded continuously. what would be the balance in the account after 2 years 65. An account with an initial deposit of $6,500 earns 7.25% annual interest, compounded continuously. How much will the account be worth after 20 years?