Question

Your car needs a new engine and it cost $1,000. you currently have $600 to invest at 7% compound annually, how long will you have to wait to buy the engine?

Answer 1

Amount = Principal ( 1 + interest rate) ^ years

$1000 = $600 ( 1 + .07 ) ^ years

$1000 / $600 = 1.07 ^ years

1.66667 = 1.07 ^ years

years = 8