Question

John Jamison wants to accumulate $78,000 for a down payment on a small business. He will invest $39,000 today in a bank account paying 8% interest compounded annually. Approximately how long will it take John to reach his goal?

Answer 1

It will take 9 years jhon to reach the goal

Step-by-step explanation:

We have given final amount A = $78000

Present amount P = $39000

Rate of interest = 8%

We have to find the time

We know the formula of final amount

`A=P(1+(r)/(100))^n`, here A is final amount, P is present amount, r is rate of interest, n is number of period

`78000=39000(1+(8)/(100))^n`

`2=1.08^n`

n = 9 years