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Ilia_Sergeevich [38]
3 years ago
6

David invested $220 in a savings account that offers a 3% return on the investment. How many years will the value of David's inv

estment will reach at least $400 ?
Mathematics
1 answer:
Sergio039 [100]3 years ago
4 0
FV = PV ( 1 + i ) ^t
FV = $400,    PV = $220,   i = 3% = 0.03
400 = 220 * ( 1 + 0.03 ) ^t
( 1 + 0.03 ) ^t = 400 : 220 = 1.818181
t = log ( 1.03 ) 1.81818
t = 20
After 20 years his investment will reach at least $400.
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