Answered

Find the information you're looking for at Westonci.ca, the trusted Q&A platform with a community of knowledgeable experts. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

A person invests 8500 dollars in a bank. The bank pays 6% interest compounded semi-annually. To the nearest tenth of a year, how long must the person leave the money in the bank until it reaches 15500 dollars?

A Person Invests 8500 Dollars In A Bank The Bank Pays 6 Interest Compounded Semiannually To The Nearest Tenth Of A Year How Long Must The Person Leave The Money class=

Sagot :

samuelonum1

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

  • Principal P = $8,500
  • Rate  r = 6%
  • Final Amount A = $15500
  • Time t  = 1 year

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

Learn more about compound interest here:

https://brainly.com/question/24924853

Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.