Problema Solution
How many years will it take $480 to grow to $1094.83 if it's invested at 7%?
Answer provided by our tutors
we will assume that $480 are invested at 7% simple annual interest that is:
P = $480 the principal
r = 0.07 or 7% the simple annual interest
A = $1,094.83 is the future value
t = the time in years
A = P(1 + r*t)
P(1 + rt) = A
480(1 + 0.07t) = 1094.83
by solving we find
t = 18.3 years
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it takes 18.3 years for $480 to grow to $1,094.83.