SOLUTION: - How many months does it take for $1000 to grow to $1500 in an account paying 12% compounded monthly?

Question 151295: - How many months does it take for $1000 to grow to $1500 in an account paying 12% compounded monthly?
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
Start with the compound interest formula.

Plug in , , (note: 12%=0.12) and

Divide both sides by 1000.

Reduce

Divide to get 0.01

Add 1 to 0.01 to get 1.01

Take the log of both sides.

Rewrite the right side using the identity

Divide both sides by .

So the answer is which approximates to

So it takes about 3.4 years (or 40.8 months) to go from $1,000 to $1,500

RELATED QUESTIONS
Very very urgent pls How many months does it take for $1500 to grow to $2000 in an... (answered by ankor@dixie-net.com)

How many years does it take for $500 to grow to $1000 in an account paying 12.6%... (answered by ewatrrr)

If $ 500 is decompressed in an account paying 8.5% annual interest, compounded... (answered by ikleyn,ankor@dixie-net.com)

Tripling Money How long does it take for money to triple in an account paying 5% interest (answered by stanbon)

If $1000 is invested in an account paying 12% annually compounded continously, how long... (answered by tommyt3rd)

Assume that a savings account earns interest at the rate of 2% compounded monthly . If... (answered by josgarithmetic)

You deposit $800 in an account that pays 9% annual intrest compounded monthly. About how... (answered by Edwin McCravy)

How long will it take for $4,500 to grow to $10,000 if it is invested in an account... (answered by jorel1380)

How many years would it take $1000.00 invested in an account paying 4.5% compounded... (answered by Fombitz)