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Over [174]
3 years ago
10

You have $2,000 today in your savings account. How long must you wait for your savings to be worth $4,500 if you are earning 1.2

5 percent interest, compounded annually
Business
1 answer:
Alenkasestr [34]3 years ago
3 0

Answer:

n= 65.27 years

Explanation:

Giving the following information:

Present value (PV)= $2,000

Future value (FV)= $4,500

Interes rate (i)= 1.25% annual compounding

<u>To calculate the number of years required to reach the objective, we need to use the following formula:</u>

n= ln(FV/PV) / ln(1+i)

n= ln(4,500 / 2,000) / ln(1.0125)

n= 65.27 years

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