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2) Poe Tayto wants to
know how long it will take an investment of $1,000
to earn $500 in interest if the yearly interest rate is 4.75%. Please answer fast and show work I will mark you as brain

2 Poe Tayto wants to know how long it will take an investment of 1000 to earn 500 in interest if the yearly interest rate is 475 Please answer fast and show wor class=

Respuesta :

facundobuzzetti

Answer:

It will take 8.73 years.

Step-by-step explanation:

Giving the following information:

Initial investment (PV)= $1,000

Future value (FV)= $1,500

Interest rate (i)= 4.75% compounded annually

To calculate the time required for the initial investment to reach the objective, we need to use the following formula:

n= ln(FV/PV) / ln(1+i)  

n= ln(1,500/1,000) / (1.0475)

n= 8.73

It will take 8.73 years.

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