A person invests 5500 dollars in a bank. The bank pays 4.25% interest compounded quarterly. To the nearest tenth of a year, how long must the person leave the money in the bank until it reaches 8600 dollars?

Solution

Solution

Time : 10.57

Solution steps

Translate the problem into an equation:

8600 = 5500 (1 + \frac{0.0425}{4})^{4 t}

Solve for

t, 8600 = 5500 (1 + \frac{0.0425}{4})^{4 t} : t = 10.57

Time : 10.57

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