Answer:
Number of year = 25 year and 7 month (Approx.)
Step-by-step explanation:
Given:
Amount deposit = $200,000
Future amount = $1,000,000
Rate of interest = 6.5%
Find:
Number of year
Computation:
Using compound amount formula;
A = P[1+r]ⁿ
1,000,000 = 200,000[1+6.5%]ⁿ
1,000,000 / 200,000 = [1+6.5%]ⁿ
5 = [1+0.065]ⁿ
n = 25.557
Number of year = 25.557
Number of year = 25 year and 7 month (Approx.)
