Question

EASY QUESTION

Jorge put $500 into a savings account that earns 2% compounded interest annually. So after the first year, he will have $510, after the second year, he will have $520.20, and after the third year, he will have $530.60. If he does not deposit any more money, how many years will it take until Jorge has over $600 in his account?

it will take 9 months, right?

Answer 1

start with the ending balance:

600 = 530.60(1.02)^n

Answer 2

Are you sure you mean months?

Answer 3

A = P(r)^n

A/P = r^n

ln(A/P) = ln(r^n)

ln(A/P) = n ln(r)

ln(A/P)
------- = n
ln(r)

Answer 4

if we add in the first 3 years ... then 9 years and a few months seems good