Asked by Janice
Jasmine invested $73,000 in a fixed rate account offering 7.2% interest rate compounded semiannually. How long will it take her to grow it to $100,000?
100,000=(73,000)(0.072)^2)t
100,000=(73,000)(0.072)^2)t
Answers
Answered by
Henry
P = Po(1+r)n = 100,000.
r = 0.072/2 = 0.036 = Semi-annual % rate expressed as a decimal.
n = 2Comp./yr. * t yrs. = 2t Compounding periods.
73,000(1.036)^2t = 100,000.
(1.036)^2t = 100,000/73,000 = 1.370, 2t*Log1.036 = Log1.370,
2t = Log1.370/Log1.036 = 8.90, t = 4.45 Years.
r = 0.072/2 = 0.036 = Semi-annual % rate expressed as a decimal.
n = 2Comp./yr. * t yrs. = 2t Compounding periods.
73,000(1.036)^2t = 100,000.
(1.036)^2t = 100,000/73,000 = 1.370, 2t*Log1.036 = Log1.370,
2t = Log1.370/Log1.036 = 8.90, t = 4.45 Years.
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