Ryan was 8 when his parents invested $4000 in a certificate of deposit that pays 6%. If Ryan leaves the account alone until it reaches $10,000, how old will he be?

1 Answer
Oct 22, 2017

about 24

Explanation:

Compund Interest Formula :

"Amount"="Principle"*(1+"Rate")^"Time"

Here,

$10000=$4000 *(1+6%)^"t"

=($10000)/($4000)= *(1+0.6)^"t"

=2.5=1.06^t

Take log of both sides:

log(1.06^x)=log(2.5)

=x*log(1.06)=log(2.5)

=x=log(2.5)/log(1.06)

=x~~15.73

therefore Ryan will be 8+15.73~~24 years old then.