What should i do for this question? I need help.
In 1990, John deposited $5000 in a mutual trust fund which promiss an interest of 7.5% compound yearly. The amount of $y at the end of n years is y = 5000 (1.075)^n
Find:
a) the amount of money John will have in 1998
b) the year in which the amount of money first reached $20 000.
In 1990, John deposited $5000 in a mutual trust fund which promiss an interest of 7.5% compound yearly. The amount of $y at the end of n years is y = 5000 (1.075)^n
Find:
a) the amount of money John will have in 1998
b) the year in which the amount of money first reached $20 000.
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a) y = 5000(1.075)^8 = $8917.39
b) 20,000 = 5000(1.075)^n
4 = (1.075)^n
log 4 = nlog 1.075
n = 19.17 years
Year will be 1990+19.17 = 2009.17
It will be during 2009.
b) 20,000 = 5000(1.075)^n
4 = (1.075)^n
log 4 = nlog 1.075
n = 19.17 years
Year will be 1990+19.17 = 2009.17
It will be during 2009.