SOLUTION: $40 at 4% (compounded daily) how long will it take for me to have $50?
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Question 218358: $40 at 4% (compounded daily) how long will it take for me to have $50?
Found 2 solutions by jim_thompson5910, stanbon:
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
Start with the compounding interest formula.
Plug in , , (note: 0.04 is the decimal equivalent of 4%) and
Divide to get .
Add.
Divide both sides by .
Divide to get .
Divide to get .
Pull down the exponent.
Divide both sides by .
Evaluate the left side with a calculator.
Divide both sides by to isolate 't'.
Divide.
Rearrange the equation.
Round to the nearest hundredth.
So it will take about 5.58 years for an initial investment of $40 to grow to $50 (compounded 365 times a year at 4%).
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A(t) = Ao*(1+(r/n))^(nt)
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$40 at 4% (compounded daily) how long will it take for me to have $50?
----------------------
50 = 40(1+0.04/365)^(365t)
1.25 = (1+0.04/365)^(365t)
---
365t*log(1+0.04/365) = log(1.25)
365t = log(1.25)/log(1+(0.04/365))
365t = 2036.3
t = 5.58 days
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Cheers,
Stan H.
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