Question
Asked Dec 12, 2019
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A person invests 3000 dollars in a bank. The bank pays 5.75% interest compounded annually. To the nearest tenth of a year, how long must the person leave the money in the bank until it reaches 7200 dollars?

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Expert Answer

Step 1

Given:

A person invests 3000 dollars at 5.75% interest compounded annually. The accumulated amount is 7200 dollars. That is,

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A = $7200 P = $3000 r = 5.75% n=1 || ||

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Step 2

Now compute the time period using the below formula.

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nt A = P| 1+– п

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Step 3

Substitute the known values in the a...

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(1)t 0.0575 7200 = 3000|1+ (1)t 0.0575 1+ 7200 3000 (1.0575) = 2.4 Taking logarithm on both sides, In (1.0575)' = In 2.4 1(In(1.0575))= In 2.4

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Calculus

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