Share
A person invests 9000 dollars in a bank. The bank pays 4.75% interest compounded quarterly. To the nearest tenth of a year, how long must th
Question
A person invests 9000 dollars in a bank. The bank pays 4.75% interest compounded quarterly. To the nearest tenth of a year, how long must the person leave the money in the bank until it reaches 12600 dollars?
in progress
0
Mathematics
3 years
2021-08-28T06:52:58+00:00
2021-08-28T06:52:58+00:00 2 Answers
1 views
0
Answers ( )
7.1 years
Step-by-step explanation:
Principle P = 9000 dollars
Rate r = 4.75% = 0.0475
Total Amount A = 12600 dollars
compounded quarterly n = 4
Time t = ?
t = ln(A/P) / n[ln(1 + r/n)]
t = ln(12,600/9,000) / ( 4 × [ln(1 + 0.011875/4)] )
t = 7.1 years
so the answer is 7.1 years
the answer is 7.1 because the answer is 7.1