web2.0calc
 
+0  
 

SOLVING FOR TIME

0
738
1
avatar
how many years will it take $2 million to grow to $5 million with an annual interest rate of 7%
 Aug 21, 2013

1+0 Answers

 #1
avatar+104 
0
2*(1+0.07)^x = 5 [/2]
(1+0.07)^x = 5/2 [log_1.07]
x = log_1.07(5/2) = 13,xxx

You could also use e:
(1+0.07)^x = (1+7/100)^x = e^(7x/100)

e^(7x/100) = 5/2 [ln]
7x/100 = ln(5/2)
=> x = ln(5/2)*100/7 = 13,xxx
 Aug 22, 2013

1 Online Users

Top Users

avatar+118654 Melody moderator
avatar+37084 ElectricPavlov
avatar+33653 Alan moderator
avatar+14985 asinus moderator
avatar+5265 rarinstraw1195
avatar+3146 admin administrator
avatar+2651 LiIIiam0216
avatar+2489 GingerAle
avatar+1911 tomtom
avatar+1835 NotThatSmart
avatar+1758 bader

Sticky Topics