SOLUTION: If you deposit 500 dollars into an account earning 7.8 percent interest compounded annually how long will it take for the account to be worth 1000 dollars?
Algebra ->
Customizable Word Problem Solvers
-> Finance
-> SOLUTION: If you deposit 500 dollars into an account earning 7.8 percent interest compounded annually how long will it take for the account to be worth 1000 dollars?
Log On
Question 725789: If you deposit 500 dollars into an account earning 7.8 percent interest compounded annually how long will it take for the account to be worth 1000 dollars? Answer by General_Lee87(58) (Show Source):
You can put this solution on YOUR website! Origional Question: If you deposit 500 dollars into an account earning 7.8 percent interest compounded annually how long will it take for the account to be worth 1000 dollars?
First, you multiply the money in the bank by the annuak interest rate to get the amount earned in interest each year.
500 * .078 = 39
Then you take 1000 and subtract the origional $500 investment which leaves you with $500 that you need to earn in interest. Next, you divide $500 by $39.
500 / 39 = roughly 12.82
Therefore it would take roughly 13 years for the interest and origional investment to equal $1000. I hope this helped. Good luck and God Bless.
