SOLUTION: can someone help with this problem please: Anne purchased a bond for a museum valued at $8000 for $2400. If the bond pays 5.5% annual interest compounded monthly, how long must

Algebra ->  Equations -> SOLUTION: can someone help with this problem please: Anne purchased a bond for a museum valued at $8000 for $2400. If the bond pays 5.5% annual interest compounded monthly, how long must       Log On


   

Question 165775: can someone help with this problem please:
Anne purchased a bond for a museum valued at $8000 for $2400. If the bond pays 5.5% annual interest compounded monthly, how long must she hold it until it reaches its full face value/
a. 23.94 years
b. 21.94 years
c. 19.94 years
d. 20.94 years
Answer by jojo14344(1513) About Me  (Show Source):
You can put this solution on YOUR website!

Working eqn -----> F=P%281%2B%28i%2Fm%29%29%5E%28mn%29
where ---
Continuing,
8000=2400%281%2B%280.055%2F12%29%29%5E%2812%2An%29
8000=2400%281.0045833%29%5E%2812n%29
8000%2F2400=%28cross%282400%29%281.0045833%29%5E%2812n%29%29%2Fcross%282400%29
log%288000%2F2400%29=12nlog%281.0045833%29
0.5228787=12n%281.985954x10%5E%28-3%29%29
0.5228787=0.0238314%28n%29
0.5228787%2F0.0238314=cross%280.0238314%29%28n%29%2Fcross%280.0238314%29
highlight%28n=21.9407years%29 ----> ANSWER (b), close enough I guess
Thank you,
Jojo