Answer:
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1+r/n)^nt
Where
A = total amount in the account at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount deposited
From the information given,
P = 4500
A = 6300
r = 6.75% = 6.75/100 = 0.0675
n = 2 because it was compounded 2 times in a year.
Therefore,.
6300 = 4500(1 + 0.0675/2)^2t
6300/4500 = (1 + 0.03375)^2t
1.4 = 1.03375^2t
Taking log of both sides of the equation, it becomes
Log 1.4 = 2t log 1.03375
0.1461 = 2t × 0.0144 = 0.0288t
t = 0.1461/0.0288
t = 5.1 years.
