SOLUTION: An amount of $500 is invested in an account paying 1.2% interest compounded annually. a. Write a recursive definition for P(n), the amount in the account at the beginning of the n

Question 1068260: An amount of $500 is invested in an account paying 1.2% interest compounded annually.
a. Write a recursive definition for P(n), the amount in the account at the beginning of the nth year.
b. After how many years will the account balance exceed $570?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
570=500(1.012)^n
570/500=1.14
1.14=1.012^n
ln both sides
ln 1.14=n ln 1.012
n=ln 1.14/ln 1.012
=> 10.985 years, since wants to know exceeds.
RELATED QUESTIONS
Discrete Mathematics. An amount of $500 is invested in an account paying 1.2% interest (answered by Boreal)

a principal of $1000 is invested in an account paying an annual interest rate of 10%.... (answered by checkley77)

A principal of $500 is invested in an account at 7% per year compounded annually. What is (answered by stanbon)

$500 was deposited on January 1, 1980, in an account paying 12% compounded semi-annually. (answered by stanbon)

A principal of $12,000 is invested in an account paying an annual interest rate of 6%.... (answered by rfer)

The formula A = P(1 + r)2 is used to find the amount of money, A, in an account after P... (answered by jorel555)

If $2000 is invested in an account that earns 8.25% compounded annually for 5 years, find (answered by mananth)

A principal of $1000 is invested in an account paying an annual interest rate of 12%.... (answered by stanbon)