Problema Solution
(Solving for n) How many years will it take for $500 to grow to $991.99 if it’s invested at 6 percent compounded annually?
Answer provided by our tutors
P = $500 the principal
r = 0.06 or 6% annual interest rate
A = $991.99 the future value
t = the time in years
A = P(1 + r)^t
Plug the values into the last equation:
991.99 = 500(1 + 0.06)^t
500(1 + 0.06)^t = 991.99
1.06^t = 991.99/500
........
click here to see all the equation solution steps
........
t = 11.76 yr
It will take 11.76 years for $500 to grow to $991.99.