SOLUTION: Mai deposited $3000 into an account with a 9.8% annual interest rate, compounded semiannually. Assuming that no withdrawals are made, how long will it take for the investment to g

Question 1189999: Mai deposited $3000 into an account with a 9.8% annual interest rate, compounded semiannually. Assuming that no withdrawals
are made, how long will it take for the investment to grow to $3462?
Do not round any intermediate computations, and round your answer to the nearest hundredth.

Answer by mananth(16946) (Show Source): You can put this solution on YOUR website!

r as a decimal
r = R/100
r = 9.8/100
r = 0.098 per year,
Then, solve the equation for t
t = ln(A/P) / n[ln(1 + r/n)]
t = ln(3,462.00/3,000.00) / ( 2 × [ln(1 + 0.098/2)] )
t = ln(3,462.00/3,000.00) / ( 2 × [ln(1 + 0.049)] )
t = 1.497 years
1.5 years
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