Question

A person invests 1000 dollars in a bank. The bank pays 4% interest compounded

Answer 1

Answer:

The person must leave the money for 11.8 years until the investment reaches 1600 dollars.

Step-by-step explanation:

Given that a person invests 1000 dollars in a bank, and the bank pays 4% interest compounded quarterly, to determine to the nearest tenth of a year, how long must the person leave the money in the bank until it reaches 1600 dollars the following calculation must be done:

1000 x (1 + 0.04 / 4) ^ Xx4 = 1600

1000 x 1.01 ^ 4X = 1600

1010 ^ 4X = 1600

X = 11.8

Therefore, the person must leave the money for 11.8 years until the investment reaches 1600 dollars.