Posted by Molly on .
If you deposit 1200.00 annually with 5% compounded interest, how many years will it take to get to a million dollars?
Assuming interest is compounded annually (yearly) at r% starting from an initial amount P, then the compound interest formula gives the final amount A after n years.
For the given case
Take log on both side
n(log 1.05)=log (1000/1.2)
Solve for n
or about 137 years and 10 months.
Not forgetting that we all will probably be making a million dollars a month by then.