Answer:
7.85 years which I think rounds to about 7 years and 11 months
Step-by-step explanation:
The formula for compound interest is
[tex]AV=PV*(1+\frac{i}{n})^{t*n}[/tex]
Where AV = Accumulated Value (or Future value)
PV= Present value
i= nominal interest rate
n= number of times compunded in a period (here a period is a year)
t= number of periods (years in this case)
We can plug this numbers in to get
8000=5000*(1+(.06/12))^12x
First we divide by 5000 to get
1.6=(1.005)^12x
We can rewrite this into a logarithim
log₁.₀₀₅1.6=12x
The formatting here is kind of weird but I'm trying to say that log base 1.005 1.6 = 12x
We can compute this and get
94.2355=12x
divide by 12 to get that
x=7.85 Years
