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25 June, 16:58

Odette deposited $3,624.40 into a savings account with an interest rate of 2.1% compounded annual. About how long will it take for the account to be worth $7,000?

A. 31 years, 9 months

B. 30 years, 9 months

C. 28 years, 4 months

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Answers (1)
  1. 25 June, 20:32
    0
    7000 = 3624 * (1+0.21) ^x

    7000 = 3624 * 1.021^x

    7000/3624 = 1.021^x

    875/453 = 1.021^x

    xlog (1.021 = log (875/453

    x = 31.677

    31 years 9 months
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