2500 dollars is placed in an account with an annual interest rate of 7.25%. To the nearest year, how long will it take for the account to reach the value 13100 dollars

The amount would take 24 years (to the nearest years).

Step-by-step explanation:

Given details=

Principal (initial amount)= $ 2500

Amount= $ 13,100

Rate of interest (compounded annually)= 7.25%

Time required

We know that for compound interest A= P(1+R/100)ⁿ

Where A= amount

P= principal

R=rate

n= time period

Substituting the value of A, P, R in the equation above, we get

13,100= 2500(1+7.25/100)ⁿ

13,100/2500= (1+7.25/100)ⁿ

Solving the equation would give us the value of "n" as 23.66 years

Since the answer is required in the nearest year, the answer is rounded off to 24 years.

The amount would take 24 years to reach the amount of $ 13,100