A=P(1+r/n)^(tn) A = future account value P = present value r/n = decimal interest rate per period where n =number of periods t = time in years tn = number of periods
A = 399 P = 240 r = .06 n = 12 t = the years we are looking for to answer the Q
.06/12 = .005 %
399 = 240 (1+ .005)^12t Divide both sides by 240
1.6625= 1.005^(12t) Take log of bothy sides
.22076 = 12t Log (1.005) Divide both sides by 12
.0183968= t log 1.005 divide both sides by log 1.005
8.4942 years = t
8 ys 5.92 months ~~~ 8 yrs 6 months