Indy has $2,000 invested in a financial asset earning an annually compounded interest rate of 6 percent. approximately how many years will it take before indy’s investment is worth $5,000

Answers

It takes 15.7 years to reach Indy’s amount at $5000.

According to the statement

we have to find out that the in how many years Indy’s money reaches to $5,000 from $2000.

So, For this purpose, we use the compound interest.

Compound interest is the interest you earn on interest.

And we calculate it by the

CI = P(1 + (r/12) )^12t

This the formula of the compound interest annually.

From the given information:

Indy has $2,000 invested in a financial asset earning an annually compounded interest rate of 6 percent. here we find the value of the t.

now,

CI = P(1 + (r/12) )^12t

5000= 2000(1 + (6/12) )^12t

Then solve it and the answer become 15.7.

So, It takes 15.7 years to reach Indy’s amount at $5000.

yearsto reach Indy’s amount at $5000.Compound interestis the interest you earn on interest.yearsto reach Indy’s amount at $5000.Compound interesthere