Question 207524
5% compounded monthly = .05/12 = .00417
present value = 2500
future value = 3500
formula is {{{2500 * (1.00417)^x = 3500}}}
you can solve this with logarithms.
you get {{{log((2500*1.00417)^x)) = log((3500))}}}
by the laws of logarithms, this becomes:
{{{log((2500)) + x*log((1.00417)) = log((3500))}}}
finding the logs on your calculator make the equation equal to:
3.397940009 + .001807243*x = 3.544068044
solving for x, you get:
x = 80.85690519 months
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to prove this is true, substitute in the original equation of {{{2500 * (1.00417)^x = 3500}}} to get 3500.
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your answer is:
{{{x = 80.85690518}}}
{{{1.00417^x = 1.4}}}
{{{1.4 * 2500 = 3500}}}
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