SOLUTION: I am trying to figure out the equation for the following:
I put $1000 into a savings account which has a compounded interest of 5% annually. How long will it take to earn appr
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-> SOLUTION: I am trying to figure out the equation for the following:
I put $1000 into a savings account which has a compounded interest of 5% annually. How long will it take to earn appr
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Question 140557: I am trying to figure out the equation for the following:
I put $1000 into a savings account which has a compounded interest of 5% annually. How long will it take to earn approximately $100 in interest?
This is what I came up with, but I don't know if it is correct.
1100=1000(1.05)^r
1.1=(1.05)^r
log(1.1)=log(1.05)^r
log(1.1)=tlog(1.05)
t=log(1.1)/log(1.05)=0.0413926852/0.0211892991=1.95347118395
Is this correct? Would it take approximately 19.5 years to earn $100 in interest? Answer by oscargut(2103) (Show Source):
