Chase invested 39,000 in an account paying an interest rate of 3.2% compounded daily. Assuming no deposits or withdrawals are made, how long would it take, to the nearest tenth of a year, for the value of the account to reach 66,100?

Solution

Chase invested 39, 000 in an account paying an interest rate of 3.2% compounded daily. Assuming no deposits or withdrawals are made, how long would it take, to the nearest tenth of a year, for the value of the account to reach 66, 100?

Solution

Time : 16.49

Solution steps

Translate the problem into an equation:

66100 = 39000 (1 + \frac{0.032}{365})^{365 t}

Solve for

t, 66100 = 39000 (1 + \frac{0.032}{365})^{365 t} : t = 16.49

Time : 16.49

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