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A savings account balance is compounded annually. If the interest rate is 2.7% per year and the current balance is $4,228.00, in how many years will the balance reach $5,518.73?

Respuesta :

The number of years it will take the balance to reach $5,518.73 with annual compounding is  9.87 years.

When will the balance reach $5,518.73?

When an account earns annual compounding, it means that both the interest accrued and the amount deposited increases in value once a year.

The formula that can be used to determine the number of years is:

Number of years =  (In FV / PV) / r

  • FV = future value
  • PV = present value
  • r = interest rate

(in 5518.73/4228) / 0.027 = 9.87 years

To learn more about how to determine the number of years, please check: https://brainly.com/question/21841217

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