Question

How long will it take $500 to accumulate to $850 at 12% compounded monthly?
I got 4.4
Pls do check whether I got it right. Btw is the answer in years or months....I'm confused.

Thanks in advance

Answer 1

depends on your definitions.
let the monthly rate be i ----> i = .12/12 = .01
let the number of months be n

500(1.01)^n =850
1.01^n = 1.7
use logs and the rules of logs
n log 1.01 = log 1.7
n = log1.7/log1.01 = appr 53.33 months or 4.44 years

looks like you got it right.