Respuesta :
Given the word problem, we can deduce the following information:
Principal amount = $4739
Future amount = $5336
Interest = 5.1 % =0.051
To determine the time to accumulate the $5336, we use the compound interest formula:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]A=Future amount=$5336
P=Present amount=$4739
r=interest rate = 0.051
n=number of compounding periods =12
t=time in years
We also note that the number of compounding periods must be 12 since the investment is compounded monthly.
We plug in what we know:
[tex]\begin{gathered} A=P(1+\frac{r}{n})^{nt} \\ 5336=4739(1+\frac{0.051}{12})^{12t} \\ Simplify\text{ and rearrange} \\ 5336=4739(\frac{12.051}{12})^{12t} \\ 12t=\frac{\ln\frac{5336}{4739}}{\ln\frac{12.051}{12}} \\ t=\frac{\operatorname{\ln}\frac{5,336}{4,739}}{12\operatorname{\ln}\frac{12.051}{12}} \\ Calculate \\ t=2.33 \end{gathered}[/tex]Therefore, the answer is 2.33 years.
