SOLUTION: How many days will it take for your T-bill to increase in value from 875$ to 900$ if it earns a simple interest rate of 4.9%? Round to the nearest day. Calculate the answer based o

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Question 1142409: How many days will it take for your T-bill to increase in value from 875$ to 900$ if it earns a simple interest rate of 4.9%? Round to the nearest day. Calculate the answer based on a 360 days in a year.
Answer by greenestamps(13195) About Me  (Show Source):
You can put this solution on YOUR website!


4.9% annual interest and a 360-day year means daily interest rate is (4.9/360)%.

The value increases by a factor of (1+.049/360) each day; the value after n days is

875%281%2B.049%2F360%29%5En

You want to know the number of days it takes for the value to reach $900. So you need to solve the equation

875%281%2B.049%2F360%29%5En+=+900

Use a graphing calculator if possible. Otherwise, with the variable in an exponent, you will need to solve using logarithms.