Question

You have $50,000 in your account. Assuming no additional deposits are made and your account earns 8 percent per year, how long will it take for the account to have a balance of $500,000?

Answer 1

29 years

Step-by-step explanation:

50,000 + 8% = 54,150

it will take you 29 years in total

to be exact 504,882

Answer 2

29.92 years

Step-by-step explanation:

A = Ai * (1 + r)^n

500,000 = 50,000*(1 + 0.08)^n

divide by 50000

10 = 1.08^n

log of both sides

log(10) = n*log(1.08)

n = log(10) / log(1.08)

n = 29.9188 years