Oliver invests $1,000 at a fixed rate of 7% compounded monthly, when will his account reach $10,000?

Discussion in 'Calculator Requests' started by math_celebrity, Dec 20, 2020.

  1. math_celebrity

    math_celebrity Administrator Staff Member

    Oliver invests $1,000 at a fixed rate of 7% compounded monthly, when will his account reach $10,000?

    7% monthly is:
    0.07/12 = .00583

    So we have:
    1000(1 + .00583)^m = 10000

    divide each side by 1000;
    (1.00583)^m = 10

    Take the natural log of both sides;
    LN (1.00583)^m = LN(10)

    Use the identity for natural logs and exponents:
    m * LN (1.00583) = 2.30258509299
    0.00252458479m = 2.30258509299
    m = 912.064867899

    Round up to 913 months
     

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