Question

Savings account how long will it take an initial deposit of $1500 to increase in value to $2500 in a saving account with an apy of 3.1%? assume the interest rate remains constant and no additional deposits or withdrawals are made.

Answer 1

Solution:
FV = $2500
PV = $1500
RATE = r = 3.1%
To find = time to reach $2500 from $1500 = N
Formula = ln(FV/PV) / ln(1+r)
ln(2500/1500) / ln(1+0.031)
= 16.73
So, it will take 16.73 years to reach $2500 from initial deposit of $1500.