Indy has $2,000 invested in a financial asset earning an annually compounded interest rate of 6 percent. approximately how many ye

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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

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Thu Cúc 6 days 2023-01-17T02:29:11+00:00 1 Answer 0 views 0

Answer ( 1 )

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    2023-01-17T02:30:35+00:00
    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.
    Learn more about Compound interest here
    #SPJ4

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