Problema Solution
How long would it take to reach your goal of $30,000.00 if you invest $1,000.00 a year and it earns 6 percent
Answer provided by our tutors
Assuming the money is compounded annually at yearly rate of 6%:
P = $1,000 the principal
r = 0.06 or 6% annual interest
A = $30,000 the future value
t = the time needed
A = P(1 + r)^t
30000 = 1000(1 + 0.06)^t
1000(1 + 0.06)^t = 30000 divide both sides by 1000
1.06^t = 30
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click here to see the equation solved for t
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t = 58.37 years
It will take 58.37 years to reach $30,000.