How many years will it take for $12,000 to grow to $15,000 at 5.75% compounded monthly?

Answer 1

Use the compound interest formula for
n=number of periods
R=monthly interest rate, 5.75%/12=0.479167%
P=present value of investment = $12000
F=future value of investment = $15000
Then
F=ARⁿ
15000=12000(1.00479167)ⁿ
1.00479167ⁿ = 15000/12000=1.25
take log on both sides
n*log(1.00479167)=log(1.25)
n=log(1.25)/log(1.00479167)
=46.68 months
=4 years (approx.)

Answer 2

hummm...i think this question is wrong....whats your suggestion..i m waiting for your reply...thanks

CAMY