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kramer
2 years ago
8

Suppose that $7000 is placed in a savings account at an annual rate of 5.6%, compounded semi-annually. Assuming that no withdraw

als are made, how long will it take for the account to grow to $8036?
Mathematics
1 answer:
madreJ [45]2 years ago
8 0

Answer:

2.5 years

Step-by-step explanation:

Amount= $8036

Principal= $7000

Rate =5.6%

t= ?

n= 2

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

8036= 7000(1 + 0.028)^2t

1.148= (1 + 0.028)^2t

log(1.148) = log (1 + 0.028)^2t

0.05994= 2t × 0.01199

t= 2.5 years

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