Answer:
Step-by-step explanation:
Using A=P(1+r/n)^nt
Where,
P = principal amount (the initial amount you borrow or deposit), in this case $3000
r = annual rate of interest (as a decimal), in this case 0.06
t = number of years the amount is deposited or borrowed for, in this case we don't know it
A = amount of money accumulated after n years, including interest, in this case $21000
n = number of times the interest is compounded per year, in this case 12
This gives us 21,000=3,000(1+0.06/12)^12t
After simplification, 7=(1.005)^12t
By taking the logarithm of both sides,
Log7=Log1.005^12t
12t = Log 7/Log 1.005
12t =390.1545
This gives us 32.5months
