SOLUTION: You make a deposit of 2000 � into your account. The interest rate is 5% and the interest is added into the account first after one year and then annually. How long will it take you

Question 428540: You make a deposit of 2000 � into your account. The interest rate is 5% and the interest is added into the account first after one year and then annually. How long will it take your savings to grow to 10000 �?
Found 2 solutions by Gogonati, mananth:
Answer by Gogonati(855) (Show Source): You can put this solution on YOUR website!
Solution:Since the interest is added annually we know that, ,
where A(t) is the amount of investment after t years, P is the initial investment and r is the interest rate. Substitute the given values and we have:
, Divide both sides by 2000,
, Take ln of both sides,
ln(5)=tln(1.05), Divide both sides by ln(1.05),
t=ln(5)/ln(1.05)
t=33
Answer: Approximately after 33 years our investment will be 10,000 Eu.
Answer by mananth(16946) (Show Source): You can put this solution on YOUR website!
Principal P = 2000
Amount= 10000
years=n
compounded 1

Amount = P*((n+r)/n)^n

10000 = 2000 *( 1 + 0.05 )^ n
5 = *( 1 + 0.05 )^ n
ln 5 = n ln 1.05
1.61 = n 0.05
32.99 = n

Say 33 years

RELATED QUESTIONS
You make a deposit of 2000� into your account. the interest rate is 5% and the interest... (answered by Edwin McCravy)
if you deposit 2500 into your bank account and get simple interest how much interest have (answered by josgarithmetic)
At the age of 30 you decide to start saving money. At first you can only afford to... (answered by njohn01)
You make a one time deposit into an account earning 9.6% interest compounded... (answered by ikleyn)
You separated your P500,000 into two accounts. The first account has 5% interest rate... (answered by stanbon)
1)Suppose you invest $150 at the end of each month for 6 years into an account earning 6% (answered by ikleyn)
It is now the beginning of the year. Assume that, starting at the end of the year, you... (answered by Theo)
I figured out the answer but I am clueless as to the equation. Can you please help????... (answered by stanbon)
if you invest $200 into a simple interest savings account for 5 years and earn $60 in... (answered by Cintchr)