SOLUTION: Exponential and Logarithmic Functions. Compound Interest. If $500 is deposited in an account paying 8.5% annual interest, compounded semiannually, how long will it take for eth

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Question 45116This question is from textbook INTERMEDIATE ALGEBRA
: Exponential and Logarithmic Functions.
Compound Interest. If $500 is deposited in an account paying 8.5% annual interest, compounded semiannually, how long will it take for ethe account to increase to $800? This question is from textbook INTERMEDIATE ALGEBRA

Found 2 solutions by stanbon, venugopalramana:
Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website!
Compound( Interest. If $500 is deposited in an account paying 8.5% annual interest, compounded semiannually, how long will it take for ethe account to increase to $800?
A=S(1+r/n)^(nt)
800=500(1+0.085/2)^(2t)
1.6=(1+0.0425)^2t
log1.6=(2t)log1.0425
2t=log1.6/log1.0425
2t=11.29..
t=5.646... yrs
Cheers,
Stan H.

Answer by venugopalramana(3286) (Show Source):
You can put this solution on YOUR website!
Exponential and Logarithmic Functions.
Compound Interest. If $500 is deposited in an account paying 8.5% annual interest, compounded semiannually, how long will it take for ethe account to increase to $800?
A=P(1+R/100)^N
800=500*(1+8.5/100)^N
(1.085)^N=800/500=1.6
NLOG(1.085)=LOG(1.6)
N=LOG(1.6)/LOG(1.085)=0.2041/0.0354=5.76 YRS...ROUNDED ...6 YEARS