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
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.
1 answer