Answer:
It will take 6 whole years to be able to withdraw all the money
Step-by-step explanation:
To calculate the number of years it will take for the present value in your account to reach the future value we can adopt the expression below;
FV = PV (1 + r/n)^(nt)
where;
FV = the future value of the initial investment
PV = Present value of the initial investment
r = the annual interest rate
n = the number of times that interest is compounded per unit t
t = the time the money is invested for
In our case;
FV=$6,600
PV=$4,400
r=8/100=0.08
n=interest is compounded annually which is once a year=1
t=unknown
Replacing values in the formula;
6,600=4,400(1+0.08/1)^(1×t)
6,600=4,400(1+0.08)^t
6,600=4,400(1.08)^t
1.08^t=6,600/4,400
1.08^t=1.5
ln 1.08^t=ln 1.5
t×ln 1.08=ln 1.5
t=(ln 1.5)/ln 1.08
t=5.3 years
It will take 6 whole years to be able to withdraw all the money