Math Finite

How many years will it take for $12,000 to grow to $15,000 at 5.75% compounded monthly?

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asked by Ericka
  1. Use the compound interest formula for
    n=number of periods
    R=monthly interest rate, 5.75%/12=0.479167%
    P=present value of investment = $12000
    F=future value of investment = $15000
    Then
    F=ARn
    15000=12000(1.00479167)n
    1.00479167n = 15000/12000=1.25
    take log on both sides
    n*log(1.00479167)=log(1.25)
    n=log(1.25)/log(1.00479167)
    =46.68 months
    =4 years (approx.)

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    posted by MathMate
  2. hummm...i think this question is wrong....whats your suggestion..i m waiting for your reply...thanks

    CAMY

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