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21 September, 10:48

Your car needs a new engine and it cost $1,000. you currently have $600 to invest at 7% compound annually, how long will you have to wait to buy the engine?

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  1. 21 September, 12:51
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    Amount = Principal (1 + interest rate) ^ years

    $1000 = $600 (1 +.07) ^ years

    $1000 / $600 = 1.07 ^ years

    1.66667 = 1.07 ^ years

    years = 8
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