SOLUTION: Approximately how many years will it take $136,000 to grow to $468,000 if invested in an account earning 8% interest?
Algebra.Com
Question 576049: Approximately how many years will it take $136,000 to grow to $468,000 if invested in an account earning 8% interest?
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
That depends.
^{nt})
Where 
is the future value, 
is the present value, 
is the interest rate expressed as a decimal, 
is the number of compounding periods per year, and 
is the number of years.
Solve for :
}{n\ln\left(1\ +\ \frac{r}{n}\right)})
Plug in what you know:
}{n\ln\left(1\ +\ \frac{0.08}{n}\right)})
Now, once you know how many compounding periods you have in one year, you can substitute that value for and do the arithmetic. You'll need your scientific calculator for the logarithms. Note that it is ok to drop the zeros off of the amounts because the ratio of 468 to 136 is exactly the same as the ratio of 468000 to 136000.
If you can find someone to give you continuous compunding, then
}{r})
which gets you to your goal roughly 7 months faster than annual compounding but less than a day sooner than daily compounding.
John
My calculator said it, I believe it, that settles it
RELATED QUESTIONS
How long will it take $3,000 to grow to $14,000 if it is invested at 5% compounded... (answered by mananth)
Mariel deposits Php 50,000 in a savings account. The account pays 6% annual interest. How (answered by math_tutor2020,Theo)
1. How long will it take for $300 to grow to $450 in an account earning 5% simple... (answered by Boreal)
Mia invests $2,000 in a money market account that earns 5% annual interest, compounded... (answered by mananth)
Mia invests $2,000 in a money market account that earns 5% annual interest, compounded... (answered by ikleyn,MathLover1)
How many years will it take for an initial investment of $40,000 to grow to $60,000.... (answered by ikleyn)
How many years will it take for an initial investment of $10,000 to grow to $35,000?... (answered by ikleyn)
Gina puts $6500 into an account earning 7.75% interest compounded continuously. How long... (answered by htmentor)
A hospital administrator deposits $10,000 into an account that earns 9% annual interest... (answered by Theo)
