document.write( "Question 207524: How many months will it take until an account will have $3,500 if $2,500 is invested
\n" ); document.write( "now at 5% compounded monthly? \n" ); document.write( "

Algebra.Com's Answer #157021 by Theo(13342) $\"\"$ $\"About$

You can put this solution on YOUR website!
5% compounded monthly = .05/12 = .00417
\n" ); document.write( "present value = 2500
\n" ); document.write( "future value = 3500
\n" ); document.write( "formula is $\"2500+%2A+%281.00417%29%5Ex+=+3500\"$
\n" ); document.write( "you can solve this with logarithms.
\n" ); document.write( "you get $\"log%28%282500%2A1.00417%29%5Ex%29%29+=+log%28%283500%29%29\"$
\n" ); document.write( "by the laws of logarithms, this becomes:
\n" ); document.write( " $\"log%28%282500%29%29+%2B+x%2Alog%28%281.00417%29%29+=+log%28%283500%29%29\"$
\n" ); document.write( "finding the logs on your calculator make the equation equal to:
\n" ); document.write( "3.397940009 + .001807243*x = 3.544068044
\n" ); document.write( "solving for x, you get:
\n" ); document.write( "x = 80.85690519 months
\n" ); document.write( "-----
\n" ); document.write( "to prove this is true, substitute in the original equation of $\"2500+%2A+%281.00417%29%5Ex+=+3500\"$ to get 3500.
\n" ); document.write( "-----
\n" ); document.write( "your answer is:
\n" ); document.write( " $\"x+=+80.85690518\"$
\n" ); document.write( " $\"1.00417%5Ex+=+1.4\"$
\n" ); document.write( " $\"1.4+%2A+2500+=+3500\"$
\n" ); document.write( "-----
\n" ); document.write( " \n" ); document.write( "

\n" );