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 1

The formula is
A=p (1+r/k)^kt

A future value 10000
P present value 6000
R interest rate 0.0375
K compounded every two months 6
T time?

We need to solve for t
T= [log (A/p)÷log (1+r/k)]÷k
T=(log(10,000÷6,000)÷log(1+0.0375÷6))÷6
T=13.7 years
Round your answer to get
T=14 years