Question

Tina wants to save money for school Tina invests $1,200 in an that pays an interest rate of 6.25%

Answer 1

Answer:

37.84 years

Step-by-step explanation:

We apply the compound interest formula;

A = P(1+r)^n

In this case we have;

A = 11,900

P = 1,200

r = 6.25% p.a

We substitute these values into the above equation and solve for n, the number of years required.

11900 = 1200(1.0625)^n

9.91667 = 1.0625^n

$n=\frac{ln9.91667}{ln1.0625}$

n = 37.84 years