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

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

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

1. 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.