Asked by sp
how many years will it take for $17 thousand to grow to $91 thousand when invested at an annual rate of 6% if interest is compounded monthly?
Answers
Answered by
Henry
Pt = Po(r+1)^n
r = (6 / 12)/100 = 0.005 = MPR =
Monthly percentage rate.
91000 = 17000(1.005)^n.
Divide both sides by 17000 and
solve for n:
(1.005)^n = 5.353
Take log of both sides:
n log 1.005 = log 5.353
n = log 5.353 / log 1.005 =
0.7286 / 0.002166 = 336.37 =
The number of compounding periods.
1 mo per comp. period = 336.37 mo
= 28 years.
r = (6 / 12)/100 = 0.005 = MPR =
Monthly percentage rate.
91000 = 17000(1.005)^n.
Divide both sides by 17000 and
solve for n:
(1.005)^n = 5.353
Take log of both sides:
n log 1.005 = log 5.353
n = log 5.353 / log 1.005 =
0.7286 / 0.002166 = 336.37 =
The number of compounding periods.
1 mo per comp. period = 336.37 mo
= 28 years.
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