How do you use the formula to solve these problems: Initial deposit of $1000, annual rate of 8.5% and final value is $1800?

Question

1642 views around the world

You can reuse this answer
Creative Commons License

Answer 1 · 2016-02-09T03:03:32

Final Value #=("Initial Value")xx(1+i)^t#

Using the formula ...

Final Value #=("Initial Value")xx(1+i)^t#

#1800=(1000)(1+0.085)^t#

Simplify ...

#(1.085)^t=1.8#

Now take the log of both sides ...

#log(1.085)^t=log1.8#

#tlog(1.085)=log1.8#

#t=(log1.8)/(log1.085)~~7.2# years

hope that helped