If 5000 is invested at 72 per year compounded monthly how lo

If $5000 is invested at 7.2% per year compounded monthly, how long will it take for the investment to increase to $8000? Give your answer in years to two decimal places. 4.

Solution

A= P(1+(r/n))^nt

8000=5000(1+0.072/12)^12t

8/5 = (12.072/12)^12t

log(8/5)=12t log(12.072/12)

t=6.55 years