22.1649 months
Step-by-step explanation:
We begin by calculating the interest accruing to the principal amount in the bank account;
$6,324 - $5,678
= $646
646/5678 * 100
= 11.38 % pm
Now that know the interest rate, we calculate the amount of time it will take to accrue to $20,000
A = P(1 + rt)
Where:
A = Total Accrued Amount (principal + interest)
P = Principal Amount
r = Rate of Interest per year in decimal; r = R/100
t = Time Period involved in months or years
20000 = 5678 (1 + 0.1138t)
20000 = 5678 + 646.1564t
20000 – 5678 = 646.1564t
14,322 = 646.1564t
t = 14,322/646.1564
t = 22.1649
