If $3000 is deposited at the end of each half year in an account that earns 6.2% compounded semiannually, how long will it be before the account contains $130,000?
2 answers
and what is your thinking?
3000(1.031^n - 1)/.031 = 130000
1.031^n - 1 = 1.3743333
1.031^n = 2.3743333
n log 1.031 = log 2.3743333
n = 28.32 half-years or appr. 14 years
1.031^n - 1 = 1.3743333
1.031^n = 2.3743333
n log 1.031 = log 2.3743333
n = 28.32 half-years or appr. 14 years
2 answers