SOLUTION: Suppose you deposit $12,000 in a bank account bearing 7.3% interest compounded monthly. How many months would it take (to the nearest month) for your account balance to top $1

Question 943770: Suppose you deposit $12,000 in a bank account bearing 7.3% interest compounded monthly.
How many months would it take (to the nearest month) for your account balance to top $15,000? Use the trial and error method with a calculator to find your answer.

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Suppose you deposit $12,000 in a bank account bearing 7.3% interest compounded monthly.
How many months would it take (to the nearest month) for your account balance to top $15,000? Use the trial and error method with a calculator to find your answer.
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A(t) = P(1+(r/n))^(nt)
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15000 = 12000(1+(0.073/12))^(12t)
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5/4 = 1.00608^(12t)
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12t*log(1.00608) = log1.25
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Ans:: 12t = 36.81 months
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Cheers,
Stan H.
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