Question

9400 dollars is placed in an account with an annual interest rate of 6.25%. To the nearest tenth of a year, how long will it take for the account value to reach 47100 dollars?

Answer 1

Answer: the answer is 26.6

Explanation:

Answer 2

`t=64.2\ years`

Explanation:

we know that

The simple interest formula is equal to

`A=P(1+rt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=?\ years\\ P=\$9,400\\ A=\$47,100\\r=6.25\%=6.25/100=0.0625`

substitute in the formula above

`47,100=9,400(1+0.0625t)`

solve for t

`t=[(47,100/9,400)-1]\0.0625`

`t=64.2\ years`