document.write( "Question 892433: suppose $8000 is put into an account paying 6% compounded monthly. How long must the money be left in the account so that there is $20000 in it? Round your answer to the nearest tenth of a year \n" ); document.write( "

Algebra.Com's Answer #540540 by lwsshak3(11628) $\"\"$ $\"About$

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suppose $8000 is put into an account paying 6% compounded monthly. How long must the money be left in the account so that there is $20000 in it? Round your answer to the nearest tenth of a year
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\n" ); document.write( "compound interest formula: A=P(1+i)^n, P=initial investment, i=interest rate per compounding period, n=number of compounding periods, A=amount after n-periods
\n" ); document.write( "For given problem: P=8000, i=.06/12=.005, A=20000, compounding period=1 month
\n" ); document.write( "20000=8000(1+.005)^n
\n" ); document.write( "20/8=1.005^n
\n" ); document.write( "5/2=1.005^n
\n" ); document.write( "take log of both sides
\n" ); document.write( "log(5/2)=nlog(1.005)
\n" ); document.write( "n=log(5/2)/log(1.005)
\n" ); document.write( "n≈183.72 periods or≈15.3 yrs
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