SOLUTION: Find the time required for an investment of 5000 dollars to grow to 6500 dollars at an interest rate of 4.4 percent per year, compounded monthly.

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Question 1183161: Find the time required for an investment of 5000 dollars to grow to 6500 dollars at an interest rate of 4.4 percent per year, compounded monthly.
Found 2 solutions by ankor@dixie-net.com, MathTherapy:
Answer by ankor@dixie-net.com(22740) About Me  (Show Source):
You can put this solution on YOUR website!
Find the time required for an investment of 5000 dollars to grow to 6500 dollars at an interest rate of 4.4 percent per year, compounded monthly.
:
Use the compound interest formula: p%281%2B%28r%2Fn%29%29%5E%28nt%29 = A; where
A = resulting amt after t time
p = initial amt
r = annual interest rate in decimal form
n = compound periods per yr
t = time in yrs
:
5000%281%2B%28.044%2F12%29%29%5E%2812%2At%29 = 6500
%281.00367%29%5E%2812t%29 = 6500%2F5000
%281.00367%29%5E%2812t%29 = 1.3
using natural logs
12t*ln(1.00367) = ln(1.3)
12t = ln%281.3%29%2Fln%281.00367%29
use your calc
12t = 71.62
t = 71.72%2F12
t = 5.968 ~ 6 yrs for 5k to grow to 6.5k

Answer by MathTherapy(10552) About Me  (Show Source):
You can put this solution on YOUR website!
Find the time required for an investment of 5000 dollars to grow to 6500 dollars at an interest rate of 4.4 percent per year, compounded monthly.


Time taken for $6,500 to accumulate to $5,000, or