A person invests 5500 dollars in a bank. The bank pays 6.75% interest compound monthly. To the nearest tenth of a year, how long must the person leave the money in the bank until it reaches 13200 dollars?

We have been given that a person invests 5500 dollars in a bank. The bank pays 6.75% interest compound monthly. We are asked to find the time that will take the amount to 13,200 dollars.

We will use compound interest formula to solve our given problem.  

, where,

A = Final amount,

P = Principal amount,

r = Annual interest rate in decimal form,

n = Number of times interest is compounded per year,

t = Time in years.

Upon substituting our given values in above formula, we will get:

Now we will take natural log on both sides.

Using natural log property , we will get:

Upon rounding to nearest tenth, we will get:

Therefore, it will take approximately 13.0 years for the amount to reach $13200.

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