Step-by-step explanation:To find the interest accumulated over a period of time you use:
A = P [1 + (r/n)]^(nt)
with A = new amount in the account, P = principal, r = percent rate as a decimal, n = how many times you compound during one year, t = time in years.
A = 2000
P = 1500
r = 0.035
n=1
Thus you get:
2000 = 1500 (1+0.035)^t
Divide by 1500:
(4/3) = (1.035)^t
Apply "ln" on both sides:
ln(4/3) = t*ln(1.035)
Calculate the logarithms:
0.28768 = t*0.03440
Divide by 0.03440 on both sides:
t = 8.36 years
So after approximately 8 years and 5 month you will have $2000 or more in the account.
