Posted by **Sophie** on Friday, January 6, 2017 at 8:36pm.

If $4000 is deposited at the end of each year in an account that earns 6.2% compounded semiannually, how long will it be before the account contains $120,000?

- Business Math -
**Reiny**, Friday, January 6, 2017 at 9:37pm
when is 4000(1.031)^n = 12000 ?

1.031^n = 3

take log of both sides, and use log rules

n log 1.031 = log 3

n = log3/log1.031 = appr 35.99

So it would take 36 half-years or 18 years

check:

4000(1.031)^36 = 12005.27 , not bad

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