Currently, the balance of your savings account is $2,200. You have always earned an annual interest rate of 1.8% with this account. You have made just one deposit to this account, which was in the amount of $2,000. Assuming there has not been any withdrawals from this account, how many years ago was the deposit made?
Currently, the balance of your savings account is $2,200. You have always earned an annual interest rate of 1.8% with this account. You have made just one deposit to this account, which was in the amount of $2,000. Assuming there has not been any withdrawals from this account, how many years ago was the deposit made?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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6. Currently, the balance of your savings account is $2,200. You have always earned an annual interest rate of 1.8% with this account. You have made just one deposit to this account, which was in the amount of $2,000. Assuming there has not been any withdrawals from this account, how many years ago was the deposit made?
Expert Solution
Introduction;
Current balance (FV) = $2,200
Interest rate (r) = 0.018
Initial deposit (IV) = $2,000
Period (n) = ?
Period is the time taken for an investment to grow to a required amount.
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