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a person invests 9500 dollars in a bank. the bank pays 6.25% 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 22600 dollars?

Sagot :

The amount of time required for the person to reach using compound interest 22600 dollar is 13 years

What is compound interest?

Compound interest, also known as interest on principal and interest, is the practice of adding interest to the principal amount of a loan or deposit.

We are given that the initial investment done by a person is $9500

And the interest rate is 6.25% semi annually that is twice

And after how much time he will have 22600 dollars

To find that we use compound interest formula

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

Substituting the values we get

[tex]22600= 9500(1+0.03125)^{2t}\\2.37= (1+0.03125)^{2t}\\t= 13 years[/tex]

Hence the time required to reach $22600 is approximately 13 years


To learn more about the compound interest please refer the following link
https://brainly.com/question/24274034
#SPJ1

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