Question

Suppose you deposit $5,000 in a savings account that earns 3% annual interest. If you make no other withdrawals or deposits, how many years will it take the account balance to reach at least $6,000?

Answer 1

Use:
\[\LARGE A= P(1 + r)^n \]
So:
\[\LARGE 6000=5000(1+.03)^n \]
n=number of years
a=amount
p=principal amount
r=rate

Answer 2

I got n = 7?
6149.369327

Answer 3

Yup, so approx. 7 years.