.
You currently have $8,800 (Present Value) in an account that has an interest rate
of 6% per year compounded daily (365 times per year). You want to withdraw all your
money when it reaches $16,720 (Future Value). In how many years will you be able
to withdraw all your money?
~~~~~~~~~~~~~~~~~~
Let "r" be the compound interest rate per annum.
Start from the formula for the future value
16720 = ,
where "n" is the number of days.
It is the same as
= ,
or
1.9 = .
Take logarithm base 10 of both sides of the equation
log(1.9) = n*log(1.000164384).
Find n = = 3904.92 days, or 3905 days, rounded to the closest greater number of days.
3905 days = 10 years 8 months and about 12 days (counting 365 days/year, 30 days per month).
ANSWER. The time to wait is 3905 days, or 10 years, 8 months and about 12 days.
Solved.