Question

Your investment account pays 5.2%, compounded annually. If you invest $5,000 today, how many years will it take for your investment to grow to $9,140.20?

Select the correct answer.

a. 14.70

b. 13.30

c. 16.10

d. 11.90

e. 10.50

Answer 1

Awer Rate = 5-20%. Pia Present value of mvestment = $5000 Fectrue value y Investment = $9,140.20 n : years : ? fare Formula, we will use here Besent raleve t (et nate)" Fetme value = Eego Equate for n 9140.20 € 5000 * (1 +0.0520) 9140.20 . (1.0520) 5000 1.8280,- (1.0520)" Apply log both the side dog (1.6280) = log (1.0530) dog (1.3280 ) = n x log (1.0520) 18 cog (1.8280) > 0.261976 + 11.8993 log (1.0520) 0.022016 or 11.90 es Scan So, it will take 11.96 years for investment to grow C Camsetonne 9,140,20 L