Answer:
7.4 years
Step-by-step explanation:
This is a compound interest question, from the question, we know we are to find the time.
The formula for Time in compound interest =
t = ln(A/P) / n[ln(1 + r/n)]
Where:
A = Amount after time t = $4,020
P = Principle = Initial amount invested = $2700
r = Interest rate = 5.4% = 0.054
t = ??
n = compounding frequency = monthly = 12
t = ln(A/P) / n[ln(1 + r/n)]
t = In(4020/2700)/12[In(1 + 0.054/12)]
t = 7.388 years
Approximately = 7.4 years
