Question

You currently have $5,500 (Present Value) in an account that has an interest rate of 7% per yea

compounded daily (365 times per year). You want to withdraw all your money when it reaches
$8,250 (Future Value). In how many years will you be able to withdraw all your money?
The number of years is
Round your answer to 1 decimal place.

Answer 1

Explanation:

FV = PV ( 1 + i)^n Looking for n...the number of days (expressed in years)

i = decimal interest per day = .07/365

8250 = 5500 ( 1 + .07/365)^n solve for n

n = 2114 .4 days = 5.8 years