you have $6000 and will invest the money at an interest rate of .23 percent per

Question

you have $6000 and will invest the money at an interest rate of .23 percent per month until the account is worth $11,200. How many years do you have to wait until you reach your target account value you have $6000 and will invest the money at an interest rate of .23 percent per month until the account is worth $11,200. How many years do you have to wait until you reach your target account value you have $6000 and will invest the money at an interest rate of .23 percent per month until the account is worth $11,200. How many years do you have to wait until you reach your target account value

Explanation / Answer

The future value of investment is found as follows

FV = PV ( 1 + interest rate)n

$ 11,200 = $ 6000 ( 1+ 0.0023)n

solving for n

( 1+ 0.0023)n = 1.8667

n ln 1.0023 = ln 1.8667

n = 22.64 years

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