The correct formula for this is as follows:
where n is the number of compounding periods per year, and r is the annual interest rate as a decimal,
Plugging the given values into the formula, we get:
This equation can be simplified to:
Taking logs of both sides gives:
which can be rearranged to get:
So it will take about 5.864 years for the amount to reach $4550.
where n is the number of compounding periods per year, and r is the annual interest rate as a decimal,
Plugging the given values into the formula, we get:
This equation can be simplified to:
Taking logs of both sides gives:
which can be rearranged to get:
So it will take about 5.864 years for the amount to reach $4550.