Question

3200 dollars is placed in an account with an annual interest rate of 8.25%. To the nearest tenth of a year, how long will it take for the account value to reach 9600 dollars?

Answer 1

Answer:

24.2 years

Step-by-step explanation:

The basic formula is I = P * i * t, where I is interest, P is total principal (or profit), i is rate of interest per year, and t is total time in years. I = P * i * t can be rearranged to solve for t: t = I / (i * p).

In this question I = $6400, P = $3200 and i = 8.25%, so we plug in those numbers to get t = 6400 / (0.0825 * 3200), which solves to 24.2424 years.