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24 August, 23:11

Tina wants to save money for school. tina invests $400 in an account that pay an interest rate of 7.5%. How many years will it take for the account to reach $8500? Round your answer to the nearest hundredth.

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  1. 25 August, 00:48
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    Here's the given:

    P=$400

    i=7.5%

    A=$8500

    The formula used for this problem is:

    A = P (1+i) ^t

    Manipulating the equation to arrive at t, we have:

    t = ln (A/P) / ln (1+i)

    Plugging in values:

    t = ln ($8500/$400) / ln (1+0.075)

    t = 42.26 years
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