Candice deposited $3,587.39 into a savings account with an interest rate of 4.2% compounded twice a year. About how long will it take for the account to be worth $5,000?
Time taken for the amount deposited to grow to $5000 will be found as follows: A=P(1+r/100*n)^nt where: A=amount P=principle r=rate n=number of terms t=time thus plugging in our values we have: 5000=3587.39=(1+4.2/200)^2t solving for t we have: 1.393771=1.021^2t 2t=ln1.393771/ln1.021 2t=16.111 t=8.055685 years~8 years
