SAT Subject Test Mathematics Level 2

1,000(1.02)x    =   1,126

Divide both sides by 1,000 to get the exponential expression alone on the left side:

1.02x   =   1.126

Solve this equation for x using logarithms:

log 1.02x   =   log1.126

Once you have converted an exponential expression to a logarithm, you can move the
exponent to the front:

x   log 1.02    =   log 1.126

Now you can solve the equation for x by dividing:

Since the question asks for the number of years needed to reach approximately $1,126, you
can round the number up to 6.