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PtichkaEL [24]
2 years ago
13

Manuel invested $10,000 in a savings account with a 3% interest rate that gets compounded daily. Write a model for Manuel to tra

ck/predict his money's value over time. In how many years will the value of the account be $12,000?
Mathematics
1 answer:
sesenic [268]2 years ago
7 0

Answer:

It will take 6.2 years for the value of the account to be $12,000

Step-by-step explanation:

P x (1 + rn)          

Where P = Principal

r rate of interest

n = number of time interest is calculated in a year

$10,000 x (1.03)N = $12,000

(1.03)N = $12000 / $10000

(1.03)N = 1.2

Taking natural log,

N x ln 1.03 = ln 1.2

N x 0.0296 = 0.1823

N = 6.2 years

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