Question

You currently have $2,500 invested at an annual rate of 8%. How long will it take for this investment to grow to a value of $3,500?

Explanation please

Answer 1

Hello Sir/ Mam

The question states that we currently have $2,500 and interest rate that we can earn is 8%.

We require $3,500 in the future, hence, it is the future value.

Now, we know that:

Future Value =Present Value(1 +r)

$3, 500 $2,500(1.08)

1.4 (1.08)

In(1.4)nn(1.08)

In(1.4) In (1.08)

n4.37 years

I hope this solves your doubt.

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