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27 April, 11:51

You invest $6.500 into a mutual fund that is expected to earn 6% per year. How long will it take the fund to earn $13,000?

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  1. 27 April, 13:54
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    Y = $6.500 (1.06) ^x

    13000 = $6.500 (1.06) ^x

    2000 = (1.06) ^x

    log 2000 = x log 1.06

    x = log 2000 / log 1.06

    130 years
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