SOLUTION: You deposit $800 in an account that pays 9% annual intrest compounded monthly. About how many years will it take for the account balance to reach $2400? Convert this to years and m

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Question 183182: You deposit $800 in an account that pays 9% annual intrest compounded monthly. About how many years will it take for the account balance to reach $2400? Convert this to years and months.
Answer by Edwin McCravy(20056)   (Show Source): You can put this solution on YOUR website!
You deposit $800 in an account that pays 9% annual
interest compounded monthly. About how many years
will it take for the account balance to reach $2400?
Convert this to years and months.



where A = Final Amount = $2400
      P = Beginning Amount = $800
      R = Rate expessed as a decimal = .09
      N = Number of compoundings per year = 12
      T = Number of years = ?  (What we must find)

We substitute for all but T









 




12 years

To get the months, multiply the decimal 
part  by 12

 months

or about 12 years, 3 months.

Edwin

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