SOLUTION: A principal of $3000 is invested at 5.5% interest, compounded annually. How many years will it take to accumulate $5000 or more in the account?

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Question 523737: A principal of $3000 is invested at 5.5% interest, compounded annually. How many years will it take to accumulate $5000 or more in the account?
Answer by mananth(16946) About Me  (Show Source):
You can put this solution on YOUR website!
Principal P = 3000
Amount= 5000
years=n
compounded (t) 1
Rate = 5.5 0.06
Amount = P*((n+r)/n)^n

5000 = 3000 *( 1 + 0.06 )^ n*t
1.67 = *( 1 + 0.06 )^ n* 1
ln 1.67 = 1 n *ln 1.06
0.51 = 1 0.05 *n
9.54 = n
greater than 9.54 years