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.