Question 296813: How long will it take for $2,500 to grow to $10,000 if it is invested in account paying 6.25% per year compounded annually?
Write your answer in years rounded to one decimal place.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! How long will it take for $2,500 to grow to $10,000 if it is invested in account paying 6.25% per year compounded annually?
Write your answer in years rounded to one decimal place.
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A(t) = P(1+(r/n))^(nt)
10,000 = 2500(1+(0.0625/1)^(1*t)
4 = (1.0625)^t
t*ln(1.0625)=ln(4)
t = [ln(4)]/[ln(1.0625)]
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t = 22.87 yrs
Rounded: t = 22.9 yrs
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Cheers,
Stan H.
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