Question

A principal of $3100 is invested at 3% interest, compounded annually. How many years will it take to accumulate $4000 or more in the account? (Use the

calculator provided if necessary.)
Write the smallest possible whole number answer.

Answer 1

8.46 years

Explanation:

Given data

P=$3100

R= 3%

A= $4000

Calculate time, solve for t

t = ln(A/P) / r

substitute

t=ln(4000/3100)/3

t=ln1.290/0.03

t= 0.254/0.03

t= 8.46

Hence the time is 8.46 years