Question

Faisal has $ 15 comma 000 in his savings account and can save an additional $ 4 comma 500 per year. If interest rates are​ 12%, how long will it take his savings to grow to $ 50 comma 000 ​?

Answer 1

It will take 4 years 6 months.

Step-by-step explanation:

Required here is the period, n for an investment to grow to $50,000 and this is calculated as follows :

Pv = - $15,000

Pmt = - $4,500

P/yr = 1

r = 12 %

Fv = $50,000

n = ?

Using a Financial Calculator, the period, n for an investment to grow to $50,000 is 4.50 or 4 years 6 months.