Two accounts are opened at the same time. You deposit 1450 dollars into the first account,...

Two accounts are opened at the same time. You deposit 1450 dollars into the first account, which earns interest at an effective rate of 6.3 percent. At the same time, you deposit 260 dollars into the second account, which earns an effective rate of 11.8 percent. How long will it take for the balance in the first account to be exactly twice the balance in the second account? (Assume compound interest at all times.)

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Expert Solution

Year	Account 1 Balance [Previous Years Balance*(1.063)]	Account 2 Balance [Previous Years Balance*(1.118)]	Account 1 Balance/ Account 2 Balance
1	1450	260	5.576923077
2	1541.35	290.68	5.302566396
3	1638.45505	324.98024	5.04170669
4	1741.677718	363.3279083	4.793679974
5	1851.403414	406.2006015	4.557854931
6	1968.04183	454.1322725	4.333631298
7	2092.028465	507.7198806	4.120438345
8	2223.826258	567.6308265	3.917733418
9	2363.927312	634.6112641	3.725000557
10	2512.854733	709.4953932	3.541749188
11	2671.164581	793.2158496	3.367512868
12	2839.44795	886.8153199	3.201848103
13	3018.333171	991.4595276	3.044333214
14	3208.48816	1108.451752	2.894567269
15	3410.622914	1239.249059	2.752169058
16	3625.492158	1385.480448	2.616776126
17	3853.898164	1548.96714	2.488043848
18	4096.693748	1731.745263	2.365644553
19	4354.785454	1936.091204	2.24926669
20	4629.136938	2164.549966	2.138614036
21	4920.772565	2419.966862	2.033404937
22	5230.781237	2705.522952	1.9333716

Therefore, It will take 21 years (approximately)

jeff jeffy answered 1 year ago

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