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):
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 :
Plug in what you know:
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
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
