David invested $220 in a savings account that offers a 3% return on the investment. How many years will the value of David's investment will reach at least $400 ?

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asked Oct 11, 2017 5.5k views

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Stiefel · Answer 1 · 2017-10-16T12:26:31+0000

FV = PV ( 1 + i ) ^t
FV = $400, PV = $220, i = 3% = 0.03
400 = 220 * ( 1 + 0.03 ) ^t
( 1 + 0.03 ) ^t = 400 : 220 = 1.818181
t = log ( 1.03 ) 1.81818
t = 20
After 20 years his investment will reach at least $400.

David invested $220 in a savings account that offers a 3% return on the investment. How many years will the value of David's investment will reach at least $400 ?

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