Answer:
It would take 12.1 years.
Step-by-step explanation:
We are given with $3000 invested in bank pays 6.75% interest compounded semi annually to the nearest 10th. We are asked to find the number of years the bank reaches $6700.
Let's use the compound interest formula.
We know A=6700
P=3000
r =0.0675
n=2(because compounded semiannually)
t =?( we need to find it)
Plug in the known values into the formula.
Simplify and solve for 't'
Divide both sides by 3000
Take log on both sides
Divide both sides by log(1.03375)
24.2067=2t
Divide both sides by 2.
t=12.10...
To round to nearest 10th, we get t=12.1 years.