How long does it take for an account containing $7,000 to be worth $15,900 if the money is invested at 9% compounded monthly? Round your answer to the one decimal place.
A)10.7 years
B)7.6 years
C)9.1 years
D)9.9 years
E)11.4 years

Question

How long does it take for an account containing $7,000 to be worth $15,900 if the money is invested at 9% compounded monthly? Round your answer to the one decimal place. ​
A)10.7 years
B)7.6 years
C)9.1 years
D)9.9 years
E)11.4 years

Quizplus · Accepted Answer

To find the time it takes for the investment to grow, we use the formula for compound interest: A = P(1 + r/n)^(nt). Here, A = $15,900, P = $7,000, r = 0.09, n = 12. Solving for t gives approximately 9.1 years.

How Long Does It Take for an Account Containing $7,000