Question 378198: Suppose $200 was invested at 9% per annum compounded annually. How many years will it take for the investment to grow to $500? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Suppose $200 was invested at 9% per annum compounded annually. How many years will it take for the investment to grow to $500?
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A(t) = P(1+(r/n))^(nt)
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500 = 200(1+(0.09/1))^(1*t)
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2.5 = 1.09^t
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t*log1.09 = log2.5
t = [log(2.5)]/[log(1.09)]
t = 10.63 years
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Rounding up time = 11 years.
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Cheers,
Stan H.
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