Question

find the number of years required to reach the intended future value at the given rate: p=$1000, FV=$3000,r=5%

Answer 1

To find out in how many years the future value will be $3000 we need to use the formula:

$FV=P(1+rt)$

where FV is the future value, P is the principal, r is the rate in decimal form and t is the time.

Plugging the values and solving for t we have:

$\begin{gathered} 3000=1000(1+0.05t) \\ \frac{3000}{1000}=1+0.05t \\ 3-1=0.05t \\ t=\frac{2}{0.05} \\ t=40 \end{gathered}$

Therefore the required numbers of year is 40.