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Molly Invests $8,600 into her son's college fund, which earns 3% annual interest

compounded daily. Find when the value of the investment reaches $13,000. If necessary,

round to the nearest tenth.

The fund will reach $13,000 in approximately

years.

Respuesta :

facundobuzzetti

Answer:

n= 13.8 years

Step-by-step explanation:

First, we need to determine the daily interest rate:

Daily interest rate= 0.03 / 365

Daily interest rate= 0.000082

Now, using the following formula we can determine the number of days and years:

n= ln(FV/PV) / ln(1+i)  

n= ln(13,000 / 8,600) / ln(1.000082)

n= 5,039 days

In years:

n= 5,039/365

n= 13.8 years

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