Question

You invest $6000 into an account paying 3.75% annual interest compounded bimonthly(every 2 months), and you want to have $10,000 saved for your first year of college. How long will it take for your investment to grow that large? Round your answer to the nearest whole number.
Answer
a. 14
b. 15
c. 13
d. 12

Answer 1

It b, 15.
10,000 = 6000 ( 1 + 3.75/600)^6t 


t = 14 years 8 months 

Answer 2

So here is how you are going to solve this.
Given that the base amount is $6000 and bimonthly interest is 0.0375 (37.5%) and the goal is $10,000. So here is the solution.
6000 (1 + 0.0375/6)^x = 10,000
1.00625^x = 10,000/6000
x * In 1.00625 = ln 10/6
x = In 10/6 divided by In 1.00625 = 82
Number of years needed would be 82/6 which is 14 years (rounded off)
So the answer would be option A. Hope this answer helps.