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Sam puts $1000 in a savings account where his money is compounded continuously at 6%. How long will it take him to have $1200 in his bank account? Round to the nearest tenth of a year

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datgamer13
If Sam is getting 6% annually, 6% of $1000 is $60. 200 / 60 = 3.33

It would take him 3.33 years to have $1200 in his account.

It would take him 3.33 years to have $1200 in his account.

What is interest?

The interest rate formula helps in calculating the amount of money to be repaid towards a loan taken and the interest over the investment on fixed deposits, mutual funds, etc. The interest rate formula also helps in calculating the interest on credit cards.

The interest rate formula in terms of simple interest is written as:

Interest Rate = (Simple Interest × 100)/(Principal × Time)

The interest rate formula in terms of compound interest is written as:

Compound Interest Rate = P (1+i) ^t – P

Sam is getting 6% annually

So, 6% of $1000

= $60. 200 / 60

= 3.33

Hence, it would take him 3.33 years to have $1200 in his account.

Learn more about interest here:

https://brainly.com/question/13324776

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