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jonny [76]
3 years ago
9

I invest $1000 in an account earning 6% compounded annually. How long will it take for the value to reach $1500?

Mathematics
1 answer:
Klio2033 [76]3 years ago
5 0

 

P = $1000

I = 6%

S ≥ 1500

S = P(1 + i)ⁿ    

If n = 8 then:

S = 1000 × (1.06)^8 = 1000 × 1,59384 = $1593.84 ≥ $1500

⇒ <u>n = 8 years</u>

 

 

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