The time required to get a total amount of $15,500.00 with compounded interest on a principal of $8,500.00 at an interest rate of 6% per year and compounded 2 times per year is 10.162 years (about 10 years 2 months)
Compound Interest Analysis
Given Data
Calculation Steps:
First, convert R as a percent to r as a decimal
r = R/100
r = 6/100
r = 0.06 per year,
Then, solve the equation for t
t = ln(A/P) / n[ln(1 + r/n)]
t = ln(15,500.00/8,500.00) / ( 2 × [ln(1 + 0.06/2)] )
t = ln(15,500.00/8,500.00) / ( 2 × [ln(1 + 0.03)] )
t = 10.162 years
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