Question
An investment initially worth $5300 earns 7.7% annual interest, and an investment initially worth $8000 earns 5.6% annual interest, both compounded annually.
How long will it take for the smaller investment to catch up with the larger one?
How long will it take for the smaller investment to catch up with the larger one?
Answers
solve for t in
5300 * 1.077^t = 8000 * 1.056^t
t = 20.9 years
or, 21, since the interest is credited at year's end.
5300 * 1.077^t = 8000 * 1.056^t
t = 20.9 years
or, 21, since the interest is credited at year's end.
where is the work? I'm still lost
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