g : How long will it take for a $4000 investment to grow to $6000 at an annual rate of 15%, compounded monthly? Assume that no withdrawals are made. Do not round any intermediate computations, and round your answer to the nearest hundredth.

2.72

Explanation:

A = P (1+r/n) ^nt

P: Principal amount

r: interest rate

n: number of times interest is applied per time period

t: time period

6000=4000 (1 + 0.15/12) ^12t

1.5 = (1.0125) ^12t

applying log on both sides

log1.5 = log 1.0125^12t

log 1.5 = 12t log 1.0125

12t = 0.03063

12t = 32.64

t = 2.72 years