Tim has a savings account with the bank. The bank pays him 1% per year. He has $5,000 and wonders when it will reach $5,300. When will his savings reach $5,300? If necessary, round the answer to the nearest whole number.Considering interest is calculated yearly, it will take Tim approximately ___ year(s).

Assume interest is compounded at the end of each year, with a principal P over n years at interest i=0.01.
Future value =5300

Then
Future value
= P(1+i)^n
=>
5300=5000((1.01)^n)

Solve for n
1.01^n=5300/5000=1.06
n=1.06^(1/6)=5.856 years.


If interest rate is 1% simple interest, then
n=(1.06-1)/.01=6 years.