Question

2) Poe Tayto wants to

know how long it will take an investment of $1,000
to earn $500 in interest if the yearly interest rate is 4.75%. Please answer fast and show work I will mark you as brain

Answer 1

It will take 8.73 years.

Explanation:

Giving the following information:

Initial investment (PV)= $1,000

Future value (FV)= $1,500

Interest rate (i)= 4.75% compounded annually

To calculate the time required for the initial investment to reach the objective, we need to use the following formula:

n= ln(FV/PV) / ln(1+i)

n= ln(1,500/1,000) / (1.0475)

n= 8.73

It will take 8.73 years.