Question

An investment of $8500 increases in value by 4.5% every year. How long until the investment reaches about $17323.

Answer 1

It would take 16 years and 64 days until the investment reaches about $ 17323

Explanation:

Given that an investment of $ 8500 increases in value by 4.5% every year, to determine how long it would take until the investment reaches about $ 17323, the following calculation must be performed:

8,500 x (1 + 0.045 / 1) ^ X = 17,323

8,500 x 1,045 ^ X = 17,323

1,045 ^ X = 17,323 / 8,500

1.045 ^ X = 2.038

1,045 ^ 16,175 = 2,038

X = 16.175

1 = 365

0.175 = X

0.175 x 365 = X

63.875 = X

Therefore, it would take 16 years and 64 days until the investment reaches about $ 17323