Solve the problem.
-How long must $4100 be in a bank at 8% compounded annually to become $10,324.50? (Round to the nearest year.)
A) 14 yr
B) 11 yr
C) 12 yr
D) 13 yr

Question

Quizplus · Accepted Answer

The formula for compound interest is A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the annual interest rate, n is the number of times per year that the interest is compounded, and t is the number of years.In this case, we have A = $10,324.50, P = $4100, r = 8%, n = 1 (compounded annually), and we want to find t.Substituting these values into the formula, we get:10324.50 = 4100(1 + 0.08/1)^(1*t)10324.50 = 4100(1.08)^t10324.50/4100 = 1.08^t2.51817 = 1.08^tt = log(2.51817)/log(1.08)t = 12.00Therefore, the answer is C) 12 yr.

Solve the Problem. -How Long Must $4100 Be in a Bank at 8