Tim has a savings account with the bank. the bank pays him 1% per year. he has $5,000 and wonders when it will reach $5,300. when will his savings reach $5,300? if necessary, round the answer to the nearest whole number. considering interest is calculated yearly, it will take tim approximately year(s).

If interest is calculated yearly, it will take Time approximately 6 years

Step-by-step explanation:

For interest compounded continuously we use this formula

A =

Where A = Amount in future ($5,300)

           P = Principal amount  ($5,000)

            r = interest rate (1% or 0.01)

            t = time

Now we put the values

5300 = 5000e

1.06 =

㏑1.06 = 0.01t

t = ㏑(2) ÷ 0.01

t = 5.82 years rounded to 6 years

If interest is calculated yearly (simple interest)

n = ( 1.06-1 ) / 0.01 = 6 years.

If interest is calculated yearly, it will take Time approximately 6 years.

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