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.

Question

Oreo

Mathematics

3 April, 11:50

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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Answers (1)

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Emilie Bass · Answer 1

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