Question

How long will it take $4000 to grow into $5089.12 if it’s invested at 3.5% compounded annually?

Answer 1

Answer: 7 years

Explanation:

From the formula A = P(1+(r/100))^t we have

5089.12 = 4000 (1+(3.5/100))^t

=> 1.27228 = (1.035)^t

Using calculator we find that 1.035^7 gives 1.272279

Hence in 7 years $4000 will grow to $5089.12 if it’s invested at 3.5%