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 your

Question 368594: 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� ?
Answer by Edwin McCravy(20055) (Show Source): You can put this solution on YOUR website!
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� ?



A = Final amount                 = 10000�
P = Beginning amount             = 2000�
r = rate expressed as a decimal  = .05
n = number of compounding/year   = 1 since it is annually (1 time per year)
t = time in years                = what we are to find out.

Substituting:






Divide through by 2000



Take logarithms (base 10) of both sides:



Use the rule of logarithms:  



Divide both sides by 



Use a calculator:



Answer: 33 years.

Edwin

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