Question

Paige deposited $200 into a bank that offers 3.3% interest rate, compounded daily. In how many years will her balance be $400?

Answer 1

Answer:

20.9 years

Explanation:

The equation for interested compounded daily is:

$N=N_{0}*(1+\frac{i}{365})^{365*n}$

Where 'N' is the final value, 'N0' is the initial value deposited, and 'i' is the interest rate, plugging in the given data:

$400=200*(1+\frac{0.033}{365})^{365*n}\\2=1.00009^{(365*n)}\\log(2) = 365*n*log(1.00009)\\n= \frac{log(2)}{365*log(1.00009)}\\n= 20.9$

It will take 20.9 years for her balance to reach $400

Answer 2

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