The team gets
1 answer:
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Given the word problem, we can deduce the following information:
Principal amount = $4739
Future amount = $5336
Interest = 5.1 % =0.051
To determine the time to accumulate the $5336, we use the compound interest formula:
A=Future amount=$5336
P=Present amount=$4739
r=interest rate = 0.051
n=number of compounding periods =12
t=time in years
We also note that the number of compounding periods must be 12 since the investment is compounded monthly.
We plug in what we know:
Therefore, the answer is 2.33 years.