Asked by Bee
Chris invests $12,000 in an account. The interest is compounded monthly at an annual rate of 11.6%. The ending account balance will be $33,916.21. How many years was the investment accruing interest?
--use a TVM calculator
--use a TVM calculator
Answers
Answered by
mathhelper
i = .116/12 = .0096666...
n = ? , where n is in months.
12000(1.009666..)^n = 33916.21
(1.009666...)^n = 2.82635...
take log of both sides, applying standard log rules:
n log 1.0096666... = lof 2.82635..
n = 108 correct to 5 decimal places
108 months = 9 years
n = ? , where n is in months.
12000(1.009666..)^n = 33916.21
(1.009666...)^n = 2.82635...
take log of both sides, applying standard log rules:
n log 1.0096666... = lof 2.82635..
n = 108 correct to 5 decimal places
108 months = 9 years
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.