How many years would it take for an investment of 280000 to
How many years would it take for an investment of $280,000 to accumulate to at least $425,000 at 15% per year interest?
Solution
Let the required number of years = N.
Then,
Future value (FV) = Present value (PV) x (1 + r)N
(1 + r)N = FV / PV
(1.15)N = $425,000 / $280,000 = 1.5179
Taking logarithms each side,
N x ln 1.15 = ln 1.5179
N x 0.1398 = 0.4193
N = 0.4193 / 0.1398 = 3 years
