Calvin invests $5000 at 5% p.a. Chloe invests $4000 at 7% p.a. How long will it take for their respective balances to be equal?

Printable View

- Sep 1st 2008, 04:27 AMMonorailCompoun Interest
Calvin invests $5000 at 5% p.a. Chloe invests $4000 at 7% p.a. How long will it take for their respective balances to be equal?

- Sep 1st 2008, 06:02 AMskeeter
for interest "paid annually" (I'm guessing that's what p.a. means)

where A = account balance

P = initial principle

r = annual percentage rate

t = time in years

you want to know when the account balances are equal ...

solve for t