Answered

Welcome to Westonci.ca, where finding answers to your questions is made simple by our community of experts. Ask your questions and receive accurate answers from professionals with extensive experience in various fields on our platform. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

If Guillermo deposits $5000 into an account paying 6% annual interest compounded monthly, how long until there is $8000 in the account?

Sagot :

We have the following:

The formula in this case is the following:

[tex]A=P(1+\frac{r}{n})^{nt}[/tex]

solving for t:

replacing

A is 8000, P is 5000, n is 12 and r is 6% (0.06)

[tex]\begin{gathered} 8000=5000(1+\frac{0.06}{12})^{12t} \\ \frac{8000}{5000}=1.005^{12t} \\ \ln (\frac{8}{5})=12\cdot t\ln (1.005)_{} \\ t=\frac{\ln (\frac{8}{5})}{12\ln (1.005)} \\ t=7.85 \end{gathered}[/tex]

therefore, the answer is 7.9 years

Thank you for choosing our service. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.