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Brian invests £4000 into his bank account. He receives 7% per year compound interest. How many years will it take for Brian to have more than £8000?

 Mar 24, 2022
 #1
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11 years give or take

 Mar 25, 2022
 #2
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FV ==PV  x  [1 + R]^N

 

8000 ==4000  x  [1  +  0.07]^N, solve for N

8000 ==4000  x        1.07^N

8000/4000 ==1.07^N

2 == 1.07^N

N ==Log(2) / log(1.07)

N ==10.245 - years to double your 4000 to 8000 pounds.

To get MORE than 8000 pounds, you will need about 10 years and ~4 months.

 Mar 25, 2022

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