Question

You deposit $10,000 into a bank account at 2% annual interest. How long will it take for the $10,000 to compound to $30,000?

N= I/Y= PV= PMT= FV= P/Y=

Answer 1

Answer: time = 55.48 years

Step-by-step explanation:

Given:

Principal amount = $10000

Interest rate = 2% p.a

Amount = $30000

We can evaluate the time taken using the following formula:

`Amount=Principal(1+(r)/(100))^(t)`

`30000 = 10000*(1+(2)/(100))^(t)`

Solving the above equation, we get

`1.02^(t) = 3`

Now taking log on both sides, we get;

`t\ log(1.02) = log(3)`

time = 55.48 years