Answer:
33 years, 7 months
Step-by-step explanation:
Using the compound interest formula Accrued Amount = P (1 + r/n)^(nt)
where Accrued amount (A) is the expected future balance
A = $8000
P = principal; $5000
r = 1.4% = 0.014
t = number of years
n = number of times interest is compounded = 12 for monthly
Therefore
8000 = 5000 (1 + 0.014/12)^(12t)
Therefore
(1.001167)^12t = 8000/5000
(1.001167)^12t = 1.6
finding the log of both sides
12t x log 1.001167 = log 1.6
12t = log 1.6 / log 1.001167
12t = 402.98
t = 402.98/12
t = 33.58
hence time to increase the balance is 33 years, 7 months
