How do I use the formula 6000=2884.25(1+1.9%/12)^(12)(t)... how do I put 38 years and 7 months into the equation?

Question

zehanz · Answer

It depends on what t is supposed to be in the formula.
If t is in months: put 38*12+7= 463 in.
If t is in years: 38+7/12 = 38.58333 in.

anonymous · Answer

Here is the question: Chloe deposited $2,884.25 into a savings account with an interest rate of 1.9% compounded monthly. About how long will it take for the account to be worth $6,000?
A) 9 years, 1 month
B) 21 years, 8 months
C) 38 years, 7 months
D) 38 years, 11 months

I think the answer is 38 years, 7 months... but I'm not sure and I don't know how to plug in 38 years, 7 months into the equation to make sure I have the right answer.

zehanz · Answer

The formula to calculate the the amount is$$A(t)=2884.25\left(1+\frac{ 0.019 }{ 12 }\right)^{12t}$$Because of the "12t" I think you have to put in years:$$A(38.58333)=(calculator)=5994.36$$It is easier to replace the "12t"in the formula by the number of months = 463:$$2884.25\left(1+\frac{ 0.019 }{ 12}  \right)^{463}=6000.054\approx 6000$$

anonymous · Answer

So that would mean the answer is 38 years, 7 months... correct? (:

zehanz · Answer

Yes!