How long must $6,000 be in a bank at 7% compounded annually to become $11,802.91?
A) 9 years
B) 12 years
C) 11 years
D) 10 years
2007-12-17 17:28:55 · 5 answers · asked by psychologygal1986 1 in Science & Mathematics ➔ Mathematics
The answer is D.
10 years.
_________
11,802.91 = 6000(1.07^x)
6000(1.07^x) = 11,802.91
1.07^x = 11,802.91 / 6000
ln(1.07^x) = ln(11,802.91 / 6000)
x ln(1.07) = ln(11,802.91 / 6000)
x = ln(11,802.91 / 6000) / ln(1.07) ≈ 10 years
2007-12-17 18:06:16 · answer #1 · answered by Northstar 7 · 1⤊ 0⤋
D.) 10 years
2007-12-18 01:35:27 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Do the algebra to this
11,802.91 = 6000(1 + .07/1)^1n
where n = the number of years, you can either just plug in each number, or turn them into logs or round 11,802 and try to get same base same base.
2007-12-18 01:32:03 · answer #3 · answered by Anonymous · 0⤊ 0⤋
6,000 at 7%
6,000 x 1.07 = first year = 6,420
6,420 x 1.07 = 2nd year = 6,869.40
Compounding means there is interest paid on the interest accrued on the previous period.
You can do the rest.
2007-12-18 01:35:49 · answer #4 · answered by Dennis Fargo 5 · 0⤊ 0⤋
6000
420
6420
6420
449.4
6869.4
6869.4
480.858
7350.258
7350.258
514.51806
7864.77606
7864.77606
550.5343242
8415.310384
8415.310384
589.0717269
9004.382111
9004.382111
630.3067478
9634.688859
9634.688859
674.4282201
10309.11708
10309.11708
721.6381955
11030.75527
11030.75527
772.1528692
11802.90814
============== Excel ===============
please ignore dublicate no#s
2007-12-18 01:37:54 · answer #5 · answered by sherif_mattar2000 2 · 0⤊ 2⤋