Clint puts $200 into an account when the interest rate is 8 percent.Later he checks his balance and finds that he has a balance of about $272.10.How many years did Clint wait to check his balance?
A)3 years
B)3.5 years
C)4 years
D)4.5 years

Question

Quizplus · Accepted Answer

We can use the formula for compound interest:

A = P(1 + r/n)^(nt)

where A is the ending balance, P is the principal (initial deposit), r is the interest rate, n is the number of times compounded per year, and t is the time in years.

Plugging in the given values, we get:

272.10 = 200(1 + 0.08/1)^(1t)

Solving for t, we get t ≈ 4 years. Therefore, the answer is choice C, 4 years.

Clint Puts $200 into an Account When the Interest Rate