Answer----38.45 Years
The effective interest rate for monthly compounding of 6% comes
to 6.17% .
All calculations are done using 6.17% as annual rate.
|
Number of years= |
38years+ |
(10000-9729.02)/600.28 |
|
Number of years= |
38years+ |
(10000-9729.02)/600.28 |
|
Number of years= |
38years+ |
0.451423 |
|
Number of years= |
38.45 years |
|
.
|
Year |
Beginning balance |
Interest earned |
Ending balance |
|
1 |
$
1,000.00 |
$ 61.70 |
$ 1,061.70 |
|
2 |
$
1,061.70 |
$ 65.51 |
$ 1,127.21 |
|
3 |
$
1,127.21 |
$ 69.55 |
$ 1,196.76 |
|
4 |
$
1,196.76 |
$ 73.84 |
$ 1,270.60 |
|
5 |
$
1,270.60 |
$ 78.40 |
$ 1,348.99 |
|
6 |
$
1,348.99 |
$ 83.23 |
$ 1,432.22 |
|
7 |
$
1,432.22 |
$ 88.37 |
$ 1,520.59 |
|
8 |
$
1,520.59 |
$ 93.82 |
$ 1,614.41 |
|
9 |
$
1,614.41 |
$ 99.61 |
$ 1,714.02 |
|
10 |
$
1,714.02 |
$
105.76 |
$ 1,819.78 |
|
11 |
$
1,819.78 |
$
112.28 |
$ 1,932.06 |
|
12 |
$
1,932.06 |
$
119.21 |
$ 2,051.27 |
|
13 |
$
2,051.27 |
$
126.56 |
$ 2,177.83 |
|
14 |
$
2,177.83 |
$
134.37 |
$ 2,312.20 |
|
15 |
$
2,312.20 |
$
142.66 |
$ 2,454.86 |
|
16 |
$
2,454.86 |
$
151.47 |
$ 2,606.33 |
|
17 |
$
2,606.33 |
$
160.81 |
$ 2,767.14 |
|
18 |
$
2,767.14 |
$
170.73 |
$ 2,937.87 |
|
19 |
$
2,937.87 |
$
181.27 |
$ 3,119.14 |
|
20 |
$
3,119.14 |
$
192.45 |
$ 3,311.59 |
|
21 |
$
3,311.59 |
$
204.33 |
$ 3,515.91 |
|
22 |
$
3,515.91 |
$
216.93 |
$ 3,732.85 |
|
23 |
$
3,732.85 |
$
230.32 |
$ 3,963.16 |
|
24 |
$
3,963.16 |
$
244.53 |
$ 4,207.69 |
|
25 |
$
4,207.69 |
$
259.61 |
$ 4,467.30 |
|
26 |
$
4,467.30 |
$
275.63 |
$ 4,742.94 |
|
27 |
$
4,742.94 |
$
292.64 |
$ 5,035.57 |
|
28 |
$
5,035.57 |
$
310.69 |
$ 5,346.27 |
|
29 |
$
5,346.27 |
$
329.86 |
$ 5,676.13 |
|
30 |
$
5,676.13 |
$
350.22 |
$ 6,026.35 |
|
31 |
$
6,026.35 |
$
371.83 |
$ 6,398.18 |
|
32 |
$
6,398.18 |
$
394.77 |
$ 6,792.95 |
|
33 |
$
6,792.95 |
$
419.12 |
$ 7,212.07 |
|
34 |
$
7,212.07 |
$
444.98 |
$ 7,657.06 |
|
35 |
$
7,657.06 |
$
472.44 |
$ 8,129.50 |
|
36 |
$
8,129.50 |
$
501.59 |
$ 8,631.09 |
|
37 |
$
8,631.09 |
$
532.54 |
$ 9,163.62 |
|
38 |
$
9,163.62 |
$
565.40 |
$ 9,729.02 |
|
39 |
$
9,729.02 |
$
600.28 |
$
10,329.30 |
