Question

For this problem, you will want to guess and check until you find the right solution. How many years does it take for $100 to reach $1 million dollars? The rate is at 5% with it being compounded twice a year. Round to a whole year. Hint: You may want to start with numbers above 100 years!\

Answer 1

Explanation:

1 Million = 1,000,000

100 x 5% = 5

100 - 5 = 95

1,000,000 divided by 95

10526.3157895 (Round it)

10526 years

(MIGHT BE INCORRECT)

Answer 2

189 years = 1011061.38575 = 1 million, 11 thousand and 61 and 38 rounded up to 2dp $35011061.39

Explanation:

100(1 + 0.05)^188=962915.605474

100(1 + 0.05)^189=1011061.38575

It cannot be 188 years.

But if we tried 189 this would make just over 1 million.= $10011061.36