SOLUTION: principal of $3500 is invested at 5.75% interest, compounded annually. How many years will it take to accumulate $5000 or more in the account?

Algebra ->  Exponential-and-logarithmic-functions -> SOLUTION: principal of $3500 is invested at 5.75% interest, compounded annually. How many years will it take to accumulate $5000 or more in the account?      Log On


   

Question 1146618: principal of $3500
is invested at 5.75%
interest, compounded annually. How many years will it take to accumulate $5000
or more in the account?
Answer by greenestamps(13200) About Me  (Show Source):
You can put this solution on YOUR website!


The principal gets multiplied by 1 plus the interest rate each year. You need to determine the number of years it will take $3500 to grow to $5000:

3500%281%2B.0575%29%5Ex+=+5000

The variable is in an exponent, so solve using logarithms.

Or on a graphing calculator graph 3500%281.0575%5Ex%29 and 5000 and find where the graphs intersect.