Question

Curtis wants to save money for a trip overseas. Curtis invests $900 in an account that pays an interest rate of 8.75%. How many years will it take for the account to reach $11,700? Round your answer to the nearest hundredth.

Answer 1

Hi there
The formula is
A=p (1+r)^t
A future value 11700
P present value 900
R interest rate 0.0875
T time?
We need to solve for t
T=log (A/p)÷log (1+r)
So
T=log(11,700÷900)÷log(1+0.0875)
T=30.6years round your answer to get
T=31 years

Hope it helps

Answer 2

For Plato users... the answer is actually 30.58.