Question

How long would it take $3,500 to grow to $8,300 if the annual rate is 5.5% and interest in compounded monthly?

Answer 1

Hi there
The formula is
A=p (1+r/k)^kn
A future value 8300
P present value 3500
r interest rate 0.055
K compounded monthly 12
N time?
We need to solve for n
N=[log (A/p)÷log (1+r/k)]÷k
N=((log(8,300÷3,500)÷log(1+0.055÷12))÷12)
T=15.7 years round your answer to get
T=16years

Hope it helps