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Math Help - Compoun Interest

  1. #1
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    Compoun 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?
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  2. #2
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    for interest "paid annually" (I'm guessing that's what p.a. means)

    A = P(1 + r)^t

    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 ...

    5000(1.05)^t = 4000(1.07)^t

    solve for t
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