Question

Justin invested $7,300 in an account paying an interest rate of 1.5% compounded quarterly. Assuming no deposits or withdrawals are made, how long would it take, to the nearest tenth of a year, for the value of the account to reach $8,560?

Answer 1

Answer:

10.7 years.

Step-by-step explanation:

7,300 * (1 + 0.015)^x = 8,560 <=>

7,300 * 1.015^x = 8,560 <=>

1.015^x = 8,560 / 7,300 <=>

1.015^x = 1.1726 <=>

x = 10.694

To the nearest tenth:

x = 10.7 years