Peter deposited $8,975 into a savings account 21 years ago. The account has an interest rate of 3.8% and the balance is currently $19,909.20. How often does the interest compound?
The formula for the future value of the account is A = P(1 + r/n)^(nt) where you have A = 19909.20 P = 8975 r = 0.038 t = 21
The resulting equation is not one that can be solved by algebraic means, but we can use a graphing calculator to find n. This graph shows us n = 12, so
