Ellie deposits $7000 in a bank and earns 3% per year in interest, compounded 1 times a year for m years. If the total interest she earns over the period is $1358.37, find the time period, m
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Ellie deposits $7000 in a bank and earns 3% per year in interest, compounded 1 times a year for m years. If the total interest she earns over the period is $1358.37, find the time period, m
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➺Principal = P = $7000
➺ Rate = R = 3%
➺ CI = $1358.37
➺ Time = T = m Years.
➺ Amount = P + CI = 7000 + 1358.37 = 8358.37
Putting All Values in Formula Now :-
➺ 8358.37 = 7000[ 1 + (3/100)]^m
➺ (835837/700000) = (103/100)^m
➺ 1.194 = (1.03)^m
Taking log both sides Now,
➺ log(1.194) = m * log(1.03)
➺ m = log(1.194) / log(1.03)
➺ m ≈ 6 Years. (Ans.)
Hence, The Time Period , m is Equal to 6 Years.