SOLUTION: 1000 euros is invested at 3% per annum interest, compounded monthly. Calculate the minimum number of months required for the value to exceed 1300 euros.
I know that this is a ge
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-> SOLUTION: 1000 euros is invested at 3% per annum interest, compounded monthly. Calculate the minimum number of months required for the value to exceed 1300 euros.
I know that this is a ge
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Question 752637: 1000 euros is invested at 3% per annum interest, compounded monthly. Calculate the minimum number of months required for the value to exceed 1300 euros.
I know that this is a geometric series and the multiplier is 1.03 per year but it is compounded monthly which makes it difficult. Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! 1000 euros is invested at 3% per annum interest, compounded monthly. Calculate the minimum number of months required for the value to exceed 1300 euros.
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A(t) = P(1+(r/n))^(nt)
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1300 = 1000(1+(0.03/12))^(12*t)
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1.3 = (1.0025)^(12t)
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12t*log(1.0025) = log(1.2)
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12t = log(1.2)/log(1.0025)
12t = 73.02
# of months is 73.02
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t would be the number of years
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Cheers,
Stan H.
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