How+long+will+it+take+for+$2900+to+grow+to+$25,600+at+an+interest+rate+of+10.4%+if+the+interest+is+compounded+quarterly?+round+t
1 answer:
The number of years to the nearest hundredth is t = 21 years and 3 months.
<h3>What is compound interest?</h3>It is defined as the interest on the principal value or deposit and the interest which is gained on the principal value in the previous year.
We can calculate the compound interest using the below formula:
Where A = Final amount
P = Principal amount
r = annual rate of interest
n = how many times interest is compounded per year
t = How long the money is deposited or borrowed (in years)
It is given that:
A = $25,600
P = $29,00
r = 10.4 = 0.104
n = 4
After solving:
t = 21.212 years
Or
t = 21 years and 3 months
Thus, the number of years to the nearest hundredth is t = 21 years and 3 months.
Learn more about the compound interest here:
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