How many years will it take $2 million to grow to $6.20 million with an annual interest rate of 7 percent? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
+130518 Assuming compound interest, we have
3.1P = P (1 + .07)^(t) where t is the time......divide through by P......and we have
3.1 = (1.07)^(t) take the log of both sides
log(3.1) = log(1.07)^(t) and we can write
log(3.1) = t * log (1.07) divide both sides by log(1.07)
t = log (3.1) / log(1.07) = about 16.72 years
If the interest rate of 7% is compounded annualy then it will take=16.72 years
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,semi-annualy..................=16.44 years
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,qurterly,,,,,,,,,,,,,,,,,,,,,,,,,,,=16.30 years
................................................................monthly,,,,,,,,,,,,,,,,,,,,,,,,,,=16.21 years
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,weekly,,,,,,,,,,,,,,,,,,,,,,,,,,,,,=16.17 years
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,daily,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,=16.16 years
