Intrest and %?

Question

You deposit $2500 into an account that pays 3.5% annual interest compounded daily. How LONG will it take the balance to reach $3000?

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

I got 5 yrs, right?


Thanks a lot for those who can reply! :)

Answer 1

I calculated 5.2 yrs which is in line with your 5 yrs.

See below.

3000 = 2500(1 + 0.035/365)^t

1.2 = (1.0000959)^t

t log (1.0000959) = log 1.2

t = 1901 days or 5.2 yrs
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