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Gnesinka [82]
3 years ago
12

a person invest $1,700 in an account that earns 3.97% annual interest. find when the value of the investment reaches $3,200

Mathematics
1 answer:
olga_2 [115]3 years ago
5 0

Answer:

  16 1/4 years

Step-by-step explanation:

Assuming interest is compounded annually, the account balance (A) after t years will be ...

  A = P(1 +r)^t

  3200 = 1700·1.0397^t

  log(3200) = log(1700) +t·log(1.0397)

  t = (log(3200) -log(1700))/log(1.0397) ≈ 16.247

The account will reach a balance of $3200 after about 16 1/4 years.

___

You may be asked to round your answer to the nearest integer or tenth. We leave that exercise to the student.

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