Question

A person invests $9300 in an account at 7% interest compounded annually. When will the value of the investment be $12,900?

Answer 1

Answer:

Approximately in 4.8 years.

Step-by-step explanation:

Compounded annually formula :

A = p ( 1+r/n)^nt

R: r/100 = 7/100 = 0.07

A: 12900

Principal amount ( A) : 9300

T: years/ period

Now let’s solve for T:

Using this equation

T: ( 1/r)(A/P-1)

T: ( 1/0.07)((12900/3900)-1)

Put on calculator u get = 5.53

T: 5.53 years which is about (5 years to 6 months)

So in conclusion the time required for this investment to reach 12900 is 5.53 years.

Hope this help.