Question

An initial investment of $10,000 grows at 11% per year.

8. Write an exponential function for the value, y, after x years.
9. When will the investment be more than $150000?​

Answer 1

Hi ,

with compound interest :

1) y = 10 000 * 1.11^x

2) 10 000 *1.11^x = 150 000

1.11^x = 150 000 / 10 000

1.11^x = 15

x = ln (15) /ln (1.11)

x ≈ 26 years