Question

A person invests 7000 dollars in a bank. The bank pays 6.25% interest compounded semi-annually. To the nearest tenth of a year, how long must the person leave the money in the bank until it reaches 11300 dollars?

Answer 1

Answer:

brainliest?

Step-by-step explanation:

5.3 years

we know that    

The compound interest formula is equal to  

 

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

in this problem we have  

 

substitute in the formula above  and solve for t

 

 

applying log both sides