Question

How long will it take for a $3000 investment to grow to $4695 at an annual rate of 10.8%, compounded monthly? Assume that no withdrawals are made.

          How long will it take for a $3000 investment to grow to $4695 at an annual rate of 10.8%, compounded monthly? Assume that no withdrawals are made.
        

Added by Gonzalo S.

Elementary and Intermediate Algebra
Elementary and Intermediate Algebra
Alan S. Tussy, R. David Gustafson 5th Edition
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How long will it take for a $3000 investment to grow to $4695 at an annual rate of 10.8%, compounded monthly? Assume that no withdrawals are made.
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Transcript

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00:01 We're going to invest $2 ,000 at a rate of 3 % compounded monthly, and we want to know how long will it take to become $2 ,370.
00:11 Let's look at our formula.
00:13 A equals p, 1 plus r over n to the nt.
00:17 We know this is $2 ,370.
00:20 We're going to invest the $2 ,000.
00:22 We have a rate of .03.
00:26 Monthly means we're getting it 12 times, so we're going to have 12t.
00:31 Now we need to solve for t.
00:33 Let's divide by 2 ,000.
00:36 I'm going to get rid of these zeros and just go 237 over 200.
00:40 We could simplify that, but we don't need to...
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