+116 How long would an investment of $1000.00 need, at a rate of 2.5% compunded mounthly, to reach a total yield of $4500.00?
+129852 We have this, BlueFire ......
4500 = 1000( 1 + .025/12) ^(12* t) where t is in years
Divide both sides by 1000
4.5 = ( 1 + .025/12)^(12*t) take the log of both sides
log (4.5) = log ( 1 + .025.12)^(12 * t) and, by a log property, we can write
log (4.5) = (12 * t) * log(1 + .025/12) divde both sides by 12 * log(1 + .025/12)
log (4.5) / [ 12 * log(1 + .025/12)] = t = about 60.23 years
