SOLUTION: A company deposits $10,000 in a bank account that earns 5% interest each year. Write an inequality that could be used to determine the number of years, n, that it will take for

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Question 1065250: A company deposits $10,000 in a bank account that earns 5% interest each year.
Write an inequality that could be used to determine the number of years, n, that it will take for the account to have at least $15,000.
Answer by addingup(3677) About Me  (Show Source):
You can put this solution on YOUR website!
simple interest or compound interest?
+ + + + + + + + + + + + + + + + + + +
Simple:
10,000*0.05*t = 15000
t = 15,000/500
. - . - . - . - . - . - . - .
Compound:
Since t is an exponent, we have to use logarithms to solve:
t = ln(15,000/10,000)/ln(1+0.05) = (ln(15,000)-ln(10,000))/ln(1+0.05)
= 8.31 years