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
let 'n' represent the number of years
we use the following formula for calculating the amount money has grown to:
T = Pe^(rn)
where 'T' represents the total amount, 'P' represents the principal amount, 'r' represents the rate and 'e' is the exponential constant
to solve for 'n':
991.99 = 500e^(0.06n)
--------------------------
--------------------------
n=11.418
so in approximately 11.4 years it will grow from $500 to $991.99