Kelly is planning to renovate her house. She intends to spend $200000. She invests $150000 in an account at 5.3% interest, compounded monthly. It will take Kelly ____ years to meet her goal, to the nearest tenth of a year.

Answer 1

P = Po*(1+r)^n

r = (5.3%/12)/100% = 0.004417 = Monthly
% rate expressed as a decimal.

n = 12Comp/yr * T yrs = 12t Compounding
periods.

P = 150,000(1.004417)^12t = 200.000
(1.004417)^12t = 200,000/150,000=1.33333
12t*Log(1.004417) = Log1.33333
12t*1.914*10^-3 = 124.9377*10^-3
12t = 65.28
t = 5.44 Yrs.

Answer 2

Thanks Henry!

Answer 3

Glad I could help!