contestada

Find how long it takes a $1,500.00 investment to earn $220.00
in interest if it is invested at 8% compounded monthly

Respuesta :

"A" = amount you will ultimately have in the account (A=1200+200=1400)

"P" = amount you started with, aka principal (p=1200)

"i" = interest rate per year (i=9%)

"m" = number of compounding periods per year (Quarterly means m=4)

"n" = number of years (n=??? - this is what you're solving for)

Plug into the formula and solve for N.

So it takes approx 1.732 years (20.78 months) to earn $200 of interest.