Question

0/10 pts Question 10 How many years will it take for $9,000 to grow to $41,000 if you can earn an average rate of 8.8 % per year? Note: Please enter your answer rounded to the nearest one digit after the decimal point. For example, if your calculated result is 23.76 years, enter your answer as: 23.8. 26.1

Answer 1

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

41,000=9000*(1.088)^n

(41,000/9000)=(1.088)^n

Taking log on both sides;

log (41,000/9000)=n*log 1.088

n=log (41,000/9000)/log 1.088

=18 years(Approx).