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Sagot :
It will take approximately 5.5 years for the investment to be worth $23,000
Compound interest
From the question, we are to determine when the investments will worth $23,000
Using the compound interest formula,
[tex]A = P (1+\frac{r}{n})^{nt}[/tex]
Where A is the amount
P is the principal
r is rate
n is the number of times it is compounded
and t is the time in years
From the given information,
A = $23000
P =$18000
r = 6.7%
n = 4
t = ?
Putting the parameters into the formula, we get
[tex]23000 = 18000(1+\frac{6.7}{100 \times 4})^{4t}[/tex]
[tex]\frac{23000}{18000} = (1.01675)^{4t}[/tex]
[tex]1.4375= (1.01675)^{4t}[/tex]
[tex]1.4375 = (1.0687)^{t}[/tex]
t = 5.46
t ≅ 5.5 years
Hence, it will take approximately 5.5 years for the investment to be worth $23,000
Learn more on Compound interest here: https://brainly.com/question/24924853
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