Asked by Katie
How long will it take for a investment to 6424 grow to at an annual rate of 6% , compounded monthly? Assume that no withdrawals are made.
Do not round any intermediate computations, and round your answer to the nearest hundredth.
Do not round any intermediate computations, and round your answer to the nearest hundredth.
Answers
Answered by
mathhelper
Missing starting value, I will assume 4000, you change it to whatever
it really is, the method does not change
i = .06/12 = .005
so
4000(1.005)^n = 6424 , where n is the number of months
1.005^n = 6424/4000 = 1.606
take logs of both sides
log [1.005^n ] = log 1.606
n log 1.005 = log 1.606
n = log 1.606/log 1.005
= .20574554/.002166061
= 94.9859
or appr 95 months = 7 yrs and 11 months
just follow the same steps
it really is, the method does not change
i = .06/12 = .005
so
4000(1.005)^n = 6424 , where n is the number of months
1.005^n = 6424/4000 = 1.606
take logs of both sides
log [1.005^n ] = log 1.606
n log 1.005 = log 1.606
n = log 1.606/log 1.005
= .20574554/.002166061
= 94.9859
or appr 95 months = 7 yrs and 11 months
just follow the same steps
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