SOLUTION: An amount of $500 is invested in an account paying 1.2% interest compounded annually. a. Write a recursive definition for P(n), the amount in the account at the beginning of the n

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Question 1068260: An amount of $500 is invested in an account paying 1.2% interest compounded annually.
a. Write a recursive definition for P(n), the amount in the account at the beginning of the nth year.
b. After how many years will the account balance exceed $570?
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
570=500(1.012)^n
570/500=1.14
1.14=1.012^n
ln both sides
ln 1.14=n ln 1.012
n=ln 1.14/ln 1.012
=> 10.985 years, since wants to know exceeds.