SOLUTION: 1000 euros is invested at 3% per annum interest, compounded monthly. Calculate the minimum number of months required for the value to exceed 1300 euros. I know that this is a ge

Question 752637: 1000 euros is invested at 3% per annum interest, compounded monthly. Calculate the minimum number of months required for the value to exceed 1300 euros.
I know that this is a geometric series and the multiplier is 1.03 per year but it is compounded monthly which makes it difficult.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
1000 euros is invested at 3% per annum interest, compounded monthly. Calculate the minimum number of months required for the value to exceed 1300 euros.
-------------
A(t) = P(1+(r/n))^(nt)
-----
1300 = 1000(1+(0.03/12))^(12*t)
-----
1.3 = (1.0025)^(12t)
----
12t*log(1.0025) = log(1.2)
----
12t = log(1.2)/log(1.0025)
12t = 73.02
# of months is 73.02
=========================
t would be the number of years
=========================
Cheers,
Stan H.
================
RELATED QUESTIONS
4. $1000 is invested at 0.025% per annum interest, compounded quarterly. a. Calculate... (answered by Boreal)

Find the balance of the account after; 2 years if K3000 is invested at 8% per... (answered by Theo)

Please help Calculate the accrued principal on 3000 invested at 12% per annum for... (answered by math_tutor2020)

Compound interest. if $1000 is invested at a rate of 7% per year compounded monthly what... (answered by richwmiller)

Hi, please can i get some help with this. On 1 January 2008, Bob Jones received a lump (answered by rothauserc)

the simple interest on sum of money invested for 6 months at 6% per annum is... (answered by amarjeeth123)

Please help with the homework below. 1. Ben owes R500 due in eight months. For each of... (answered by ikleyn)

If money is invested for 4 years at a simple interest rate of 13.2% per annum, the... (answered by josmiceli)