Solve the problem.
-Anne purchased a bond for a museum valued at $\$ 12,000$ for $\$ 6000$. If the bond pays $6 \%$ annual interest compounded monthly, how long must she hold it until it reaches its full face value?
A) 10.58 years
B) 13.58 years
C) 11.58 years
D) 9.58 years

Question

Quizplus · Accepted Answer

To find the time required for the bond to reach its full face value, use the formula for compound interest: $ A = P(1 + \frac{r}{n})^{nt} $. Here, $ A = 12000 $, $ P = 6000 $, $ r = 0.06 $, and $ n = 12 $. Solving for $ t $, we get approximately 11.58 years.

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