Answer:
46 years 1 month
Step-by-step explanation:
Let us assume the investment is a simple interest investment
The simple interest formula is
A= P(1+rt)
Given
Principal p= $1400
Rate r= 7.75%= 7. 75/100= 0.0775
Final amount A = $6400
Time t=?
To find the time t let us substitute our values in the simple interest formula
6400= 1400(1+0.0775t)
6400= 1400+108.5t
6400-1400=108.5t
5000= 108.5t
t=5000/108.5= 46.08
t= 46.1 years
It will take approximately 46 years 1 month to get the amount
Answer:
It'll take 20.36 years to reach that value.
Step-by-step explanation:
In order to find the time it'll take to achieve the final value, we need to apply the compounded interest formulla shown below:
M = C*(1 + r)^t
Where M is the final value, C is the initial value, r is the interest rate and t is the time elapsed. Applying the data from the problem in the equation, we have:
6400 = 1400*(1 + 0.0775)^t
6400 = 1400*(1.0775)^t
(1.0775)^t = 6400/1400
(1.0775)^t = 4.5714
ln(1.0775^t) = ln(4.5714)
t = ln(4.5714)/ln(1.0775)
t = 20.361
It'll take 20.36 years to reach that value.
