SOLUTION: To save for college tuition, the parents of a preschooler invest $5000 in a bond that earns 6% annual interest compounded monthly. In approximately how many years will the investme

Algebra ->  Customizable Word Problem Solvers  -> Misc -> SOLUTION: To save for college tuition, the parents of a preschooler invest $5000 in a bond that earns 6% annual interest compounded monthly. In approximately how many years will the investme      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 201179: To save for college tuition, the parents of a preschooler invest $5000 in a bond that earns 6% annual interest compounded monthly. In approximately how many years will the investment be worth $15,000?

Answer by Alan3354(69443) About Me  (Show Source):
You can put this solution on YOUR website!
To save for college tuition, the parents of a preschooler invest $5000 in a bond that earns 6% annual interest compounded monthly. In approximately how many years will the investment be worth $15,000?
15000 = 5000*(1 + 0.06/12)^n
1.005^n = 3
n*log(1.005) = log(3)
n = log(3)/log(1.005) = ~ 220.3 months
---------------
The amount does not matter. Any amount will be 3x in that many months at 6%.