Question

How long does it take for $856 to grow into $1,712 at an annual interest rate of 5%?

Answer 1

Answer:

Present Value = $856
Future Value = $1,712
Interest Rate = 5%

Present Value * (1 + Interest Rate)^Period = Future Value
$856 * (1 + 0.05)^Period = $1,712
1.05^Period = 2
Period * ln(1.05) = ln(2)
Period = 14.21 years

So, it will take 14.21 years for $856 to grow into $1,712