Question

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

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.