Question

Norman wants to invest $35,000 into an account that has an annual interest rate of 3 how long will it take to reach 50,000

Answer 1

Norman will take approximately 19.44 years to reach $50,000 with an annual interest rate of 3%.

Step-by-step explanation:

To calculate how long it will take for Norman to reach $50,000 with an annual interest rate of 3%, we can use the formula for compound interest:

P = P0 * (1 + r)n

Where:

• P is the future value ($50,000)
• P0 is the initial investment ($35,000)
• r is the annual interest rate (3% or 0.03)
• n is the number of years we want to find

Plugging in the values, we have:

$50,000 = $35,000 * (1 + 0.03)n

Now we solve for n:

(1 + 0.03)n = $50,000 / $35,000

Using logarithms, we can solve for n:

n = log1.03($50,000 / $35,000)

n = 19.44

Therefore, it will take approximately 19.44 years for Norman to reach $50,000 with an annual interest rate of 3%.