Question

The future value (F, in dollars) of P dollars invested today in the stock market is given by F=P(1+r)^t where r is the annual rate of interest earned by the investment (in percent) and t is the number of years the investment is allowed to grow. If I have $25,000 to invest today in a mutual fund that expects to earn 8% interest per year, how many years will it take for the fund to grow to $2,000,000?

Answer 1

56.94 years

Step-by-step explanation:

In this question, we use the NPER formula that is presented on the attachment which is shown below:

Given that,

Present value = $25,000

Future value = $2,000,000

Rate of interest = 8%

The formula is shown below:

= NPER(Rate;PMT;-PV;FV;type)

The present value come in negative

So, after solving this, the number of years is 56.94 years