Question

2. A savings account is started with an initial deposit of $500. The account earns 1.5% interest compounded annually.
(a) Write an equation to represent the amount of money in the account as a function of time in years.
(b) Find the amount of time it takes for the account balance to reach $800. Show your work.

Answer 1

(a)A(t)=500((1+0.015)^(t))
(b)800=500((1+0.015)^(t))
800/500=(1+0.015)^(t)
$t = log_{1.015}(\frac{800}{500} )$
t=31.567993958