A loan of $24,000 is made at 9% interest, compounded annually. After how many years will the amount due reach $45,000 or more? Don't give me an answer but tell me the process to solve it.

Question

anonymous · Answer

Okay...  You should multiply $24,000 by 0.09 (that is decimal form of 9%).  When you get that answer, add it to the $24,000 and keep repeating that process until you break 45k.

johnnydicamillo · Answer

is there an equation or formula to follow? Also when I get my initial answer do I multiply my answer by 0.09?

anonymous · Answer

Can I just show you an example?

johnnydicamillo · Answer

Please do

anonymous · Answer

Okay hang on

anonymous · Answer

A loan of $15,000 is made with a 7% interest rate, compounded annually.  After how many years will the amount reach $33,000 or more.  

So now the first step is to multiply $15,000 by 0.07.  That equals $1050, so we know after you're first year of having a loan of $15,000, it is compounded to equal $16,050.  Now thats year one, so we need to figure out how many years until it breaks $33k.  Multiply $16,050 by 0.07 and add your answers.  Then just continue until you break the amount they say.  In this case, 33k.  Do you understand that?