Adrian invested 7,200 in an account paying an interest rate of 3.1% compounded monthly. Assuming no deposits or withdrawals are made, how long would it take, to the nearest year, for the value of the account to reach 12,110?

Solución

A d r ian in v es t e d 7, 200 in an a cco u n t p a y in g an in t eres t r a t e o f 3.1% co m p o u n d e d m o n t h l y . A ss u min g n o d e p os i t s or w i t h d r a w a l s a re ma d e, h o w l o n g w o u l d i t t ak e, t o t h e n e a res t ye a r, f or t h e v a l u e o f t h e a cco u n t t o re a c h 12, 110 ?

Time : 16.79

Pasos de solución

Translate the problem into an equation:

12110 = 7200 (1 + \frac{0.031}{12})^{12 t}

Resolver para

t, 12110 = 7200 (1 + \frac{0.031}{12})^{12 t} : t = 16.79

Time : 16.79