Answer:
It will take 18.85 years for your investment to grow to $30,000.
Explanation:
Solution
Given that:
You Invest in bonds that pay =6%
Investment for today is = $10,000
Now, how many years will your investment grow to $30,000
Thus
We apply the formula which is given below:
A=P(1+r/100)^n
Where
A=future value
P=present value
r=rate of interest
n=time period.
So,
$30000 =$10000 * (1 + 0.06)^n
$30000 =$10000 * (1.06)^n
3 = (1.06)^n
Now,
we take bode sides we have the followiing;
log 3 = n* log 1.06
n =log 3/log 1.06
= 18.85 years
