asked 37.8k views
3 votes
The equation log 1.102814 = log 1.004458333312t models the amount of time it takes a $10,000 investment to grow to $11,028.14 in a savings account where the annual interest is compounded monthly. Solve for the amount of time, rounding your answer to the nearest month.

2 months
22 months
1 months
18 months

asked
User QuentinC
by
8.2k points

1 Answer

4 votes
Using the rule that states that log a = log b is equivalent to a = b, we can write:

1.102814 = 1.004458333312t

To solve for t, we can isolate it by dividing both sides of the equation by 1.004458333312:

1.102814/1.004458333312 = t

t ≈ 1.096 years

Since the annual interest is compounded monthly, we need to multiply t by 12 to get the number of months:

t(months) ≈ 13.15 months

Rounding to the nearest month, we get:

t(months) ≈ 13 months

Therefore, it takes approximately 13 months for a $10,000 investment to grow to $11,028.14 in a savings account where the annual interest is compounded monthly. Answer: 1 months.
answered
User Dijon
by
8.8k points
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