Problema Solution
The number of years it will take for $510 to grow to $1066.34 at 5 percent compounded annually is? Round to one decimal place
Answer provided by our tutors
let
t = the number of years
A = $1066.34 the future value after t year
P = $510 is the principal
m = 1 the number of compounding periods per year
n = m*t = t*1 = t the number of compounding periods
r= 0.05 the annual interest rate as a decimal
A = P(1 + r)^n
1066.34 = 510(1 + 0.05)^t
510(1 + 0.05)^t = 1066.44
1.05^t = 1066.44/510
t ln(1.05) = ln(1066.44/510)
t = ln(1066.44/510) / ln(1.05)
t = 15.1 years
click here to see the step by step calculation:
it will take 15.1 years for the money to grow from $510 to $1066.34.