Question

Help please :)
Olivia earns 5% on a $7,500 investment compounded annually. How long will it take for the investment to reach $50,000?

Answer 1

\[A=P(1+\frac{r}{n})^{nt}\]
The interest rate is r=0.05, the initial investment is P=7500, the number of compoundings per year is n=1, and the annuity is A=50000.
\[50000=7500(1+\frac{0.05}{1})^{(1)t}\]
Solve for t to find the amount of time.

Answer 2

Thanks once again jabberwock :)

Answer 3

No problem :). Are you okay from there?

Answer 4

Yes, thanks! :)