Answer :
It will take approximately- D. 3.63 years for the investment to grow to $7,242.60.
How to find?
Given that the interest rate is 9.7% compounded annually, the initial investment is $5,000 and the final value is $7,242.60.
We need to find how many years it will take for the investment to grow to $7,242.60. We can use the following formula to solve for time:T = log(PV/FV) / log(1 + r)where, T is the time in years, PV is the present value, FV is the future value, r is the annual interest rate (as a decimal).
The values for the given variables are as follows: PV = $5,000FV = $7,242.60r = 9.7% or 0.097Substituting these values in the above formula, we get: T = log(5000/7242.60) / log(1 + 0.097)T ≈ 3.63 years.
Therefore, it will take approximately 3.63 years for the investment to grow to $7,242.60.
Option (d) 3.63 years is the correct answer.
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