Final answer:
To calculate the number of years it would take for a debt of $23,821 to grow into $45,685 with an annual compound interest rate of 2.8%, you can use the formula Future Value = Present Value * (1 + Interest Rate)^Time.
Step-by-step explanation:
To calculate the number of years it would take for a debt of $23,821 to grow into $45,685 with an annual compound interest rate of 2.8%, we can use the following formula:
Future Value = Present Value * (1 + Interest Rate)^Time
Where:
- Future Value = $45,685
- Present Value = $23,821
- Interest Rate = 2.8% or 0.028
- Time = number of years
Plugging in these values, the equation becomes:
$45,685 = $23,821 * (1 + 0.028)^Time
Now we need to solve for Time. By rearranging the equation, we get:
Time = log1.028($45,685/$23,821)
Using a calculator, we find that Time ≈ 22.6 years. Therefore, it would take approximately 22.6 years for the debt to grow into $45,685.