Sara puts in 13 000$ in the account with the interest rate of 3.5%. How many years does it take before the amount has increased to 20 000$?
The answer is 13 years but I having some trouble finding how to solve the question. Please, I need some serious help.
Thanks in advance!
FV = PV x [1 + R]^N
20,000 = 13,000 x [1 + 0.035]^N divide both sides by 13,000
1.53846..= 1.035^N Take the log of both sides
N =Log(1.53846...) / Log(1.035)
N=12.52 ~ 13 Years.
+128472
20000 = 13000 (1 + .035)t divide both sides by 13000
20/13 = (1 + .035)t
20/13 = (1.035)t take the log of both sides
log (20/13) = log (1.035)t and we can write
log (20/13) = t * log (1.035) divide both sides by log (1.035)
log (20/13) / log (1.035) = t ≈ 12.52 years
