Question

This graph shows the exponential rise in balance on an initial investment of $1,500 over 25 years at 5% APR. After how many years will $2,000 in interest accumulate on the account?

Answer 1

In 27 years, there will be at least 2,000 in the account.

Explanation:

First you need to change your precent to a decimal, you can do that by dividing by 100:

5% ÷ 100 = 0.05

Then multiply your ammount ($1500 ) by your time (27years) by your decimal (0.05) :

$1,500 × 27 × 0.05 = $2,025

Then there is your answer! Hope this helped you! <3