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?

Answers

Answer 1

Answer:

16.5

Step-by-step explanation:

Answer 2

It takes 0.05 years account to reach $66,100

What Is an Interest Rate?

The interest rate is the amount a lender charges a borrower and is a percentage of the principal—the amount loaned. The interest rate on a loan is typically noted on an annual basis known as the annual percentage rate (APR).

According to the question, we have

Principal = 39000

Interest rate = 3.2%

The investment compounds daily.

So we can get F = [tex]39000(1+0.032)^{x}[/tex]

When F = 66100

[tex]66100=39000(1+0.032)^{x}[/tex]

⇒ [tex]\frac{66100}{39000}=(1+0.032)^{x}[/tex]

⇒ [tex]1.69=(1.032)^{x}[/tex]

⇒ [tex]x = log 1.69_{1.032}[/tex]

⇒ [tex]x = \frac{log1.69}{log1.032}[/tex]

⇒ x = 17 days

It takes 17 days account to reach $66,100

Converting days into years

= [tex]\frac{17}{365}[/tex]

= 0.045

= 0.05 (nearest tenth of a year)

Hence, It takes 0.05 years account to reach $66,100.

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Answers

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Step-by-step explanation:

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Answers

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