Suppose the balance in a bank account begins at \(\$13,000\) and earns \(2.2\%\) interest per year. When will there be \(\$20,000\) in the account?
First, we need to find a formula for the amount \(A\) in the account, in dollars, as a function of the time \(t\text{,}\) in years. We can quickly determine this to be
\begin{equation*}
A = 13000(1.022)^{t}.
\end{equation*}
Now we are faced with solving the equation
\begin{equation*}
13000(1.022)^t = 20000.
\end{equation*}
Quick simplification and application of the technique from the previous section gives us
\begin{align*}
(1.022)^t = \amp\ \frac{20}{13}\\
\updownarrow \amp \\
\log((1.022)^t)) = \amp\ \log\left(\frac{20}{13}\right)\\
\updownarrow \amp \\
t\log(1.022) = \amp\ \log\left(\frac{20}{13}\right) \\
\updownarrow \amp \\
t = \amp\ \frac{\log(20)-\log(13)}{\log(1.022)} \amp \approx \amp 19.8.
\end{align*}
Hence there will be \(\$20,000\) in the account in about 19.8 years.