You have received $50000 from your aunt. You invest 6% compounded annually. How long will it...

Question

Question

You have received $50000 from your aunt. You invest 6% compounded annually. How long will it take to amount to a million

business finance

Answer 1

Answer #1

Answer: 51 years

Future value = $ 1,000,000.

Present value = $ 50,000.

Therefore, $ 50,000 ( 1.06) ⁿ = $ 1,000,000

1.06 ⁿ = $ 1,000,000 / $ 50,000 = 20

n = 51

Answer 2

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