Problema Solution
how many years will it take for 480 to grow to 1,004.68 if it's invested at 5 percent compunded annually
Answer provided by our tutors
P = 480 the principle or present value
A = 1,004.68 future value
r = 0.05 or 5% the annual rate
t = the number of years or the number of compounding periods
A = P(1 + r)^t
(1 + r)^t = A/P
t ln(1 + r) = A/P
t = 1/(ln(1 + r)) A/P
t = (1/(ln(1 + 0.05))) 1004.68/480
t = 42.9 years
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it will take 42.9 years for 480 to grow to 1,004.68.