Question

7400 dollars is placed in an account with an annual interest
rate of 6%. To the nearest year, how long will it take for the
account value to reach 19200 dollars?

Answer 1

Answer:

17

Step-by-step explanation:

We have the following equation for compounding annual interest

AV=PV(1+i)ⁿ

We have

19200=7400(1+.06)ⁿ

Solve for n

divide both sides by 7400

2.594=(1.06)ⁿ

then use the following rule for exponents

$x^y=z\\log_xz=y$

which means that

$log_{1.06}2.594=n$

Solve and get

16.362

which rounds to 17