Question

You plan to invest in bonds that pay 6.0%, compounded annually. If you invest $10,000 today, how many years will it take for your investment to grow to $15,000

Answer 1

n= 6.96 years

Step-by-step explanation:

Giving the following information:

Present Value= $10,000

Future Value= $15,000

Interest rate= 6%

To calculate the number of years required, we need to use the following formula:

n= ln(FV/PV) / ln(1+i)

n= ln(15,000/10,000) / ln(1.06)

n= 6.96 years