Question

If I invest $2,500 in an account that yields 7.5% interest, how many years will it take to reach a total of $10,000 if it is compounded monthly.

A=P(1+(r/n)^nt

Answer 1

You can use guess and check, and first, 2500 * (107.5%)^20 would get us 10619.6277506, and then 19 would guess us an answer that is less than 10000, so 20 months = 1 2/3 years.