Maria invests $40,000 in a mutual fund compounding at a rate of 5.5% annually. If she makes no additional deposits or withdrawals, how many years will it take for the value of the mutual fund to reach a value of $85,000 (nearest cent)? Show steps to the solution.
+36916 FV = future value = 85000 (given)
PV = present value = 40000 (given)
i = interest (in decimal) = .055 (given)
t = years what you are looking for to answer this Q
FV = PV (1+i)t
FV/PV = (1.055)t
85000/40000 = (1.055)t Solve for the exponent 't' ....you should already know how to do this......
