Question 1029617: How long, to the nearest day, will it take $25,000 to grow to $500,000 at 9% annual interest rate compounded monthly?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! How long, to the nearest day, will it take $25,000 to grow to $500,000 at 9% annual interest rate compounded monthly?
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A(t) = P(1+(r/n))^(n*t)
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500000 = 25000(1+(0.09/12))^(12*t)
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(1.0075)^(12t) = 20
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12t = log(20)/log(1.0075)
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12t = 400.927
t = 33.4105 years
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t = 33 yrs + 0.4105*365 days = 33 yrs 149.9 days = 33 yrs 150 days
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Cheers,
Stan H.
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