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If I have 500 and have a 6% annual interest how long will it take to get 2000

User Monae
by
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1 Answer

4 votes

Answer:

23.8 years

Explanation:

Assuming this is compound interest, we'll use the compound interest formula

A = P(1 + r)ⁿ

A = Final amount (2000)

P = Initial amount (500)

r = Annual interest rate (.06)

n = ?

Our equation will look like this

2000 = 500(1.06)ⁿ

First, divide both sides by 500

2000/500 = (500(1.06)ⁿ)/500

(1.06)ⁿ = 4

Then we have to take the log₁.₀₆ out of both sides

n = log₁.₀₆(4)

n = 23.79132

User Nazar Vynnytskyi
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6.3k points