Question

If you invest $1,500 at the beginning of each year into an account which averages a return of 12% approximately how long will it take to accumulate $50,000 in the account?

Answer 1

Answer:

= 31 years

Explanation:

A = P(1 + r)^t

$50,000 = $1500(1 + 0.12)^t

$50,000 = $1500(1.12)^t

$50,000 / $1500 = 1.12^t

33.33 = 1.12^t

t = 31 years