Luther deposited 300.00 into a new savings account that earns 8% interest compounded monthly. How long will it take for the balance to grow to 359.00?Round your answer to the nearest month.

Solution

Solution

Time : 2.25

Solution steps

Translate the problem into an equation:

359 = 300 (1 + \frac{0.08}{12})^{12 t}

Solve for

t, 359 = 300 (1 + \frac{0.08}{12})^{12 t} : t = 2.25

Time : 2.25

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