Holly invests $1000 in an account that pays an interest rate of 6.25%. How many years will it take for the account to reach $550
1 answer:
Answer:
It takes 72 years to get $5500.
Step-by-step explanation:
The amount in her bank account increases as she gets interest at a rate of 6.25% per annum.
Let A be the final amount , P be the principal amount , r be the rate of interest and t be the number of years taken.
A = P ( 1 + rt )
The final amount = $5500
Principal = $1000
r = 0.0625
Substituting the above values in the given equation,
5500 = 1000 (1 + 0.0625t)
t =
t = 72 years.
It takes Holly 72 years to get $5500 amount from her bank.
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