Posted by Molly on Sunday, March 11, 2012 at 10:33am.
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.
A=P(1+r/100)^n
For the given case
1000000=1200(1.05)^n
Rearrange:
(1.05)^n=1000000/1200=1000/1.2
Take log on both side
n(log 1.05)=log (1000/1.2)
Solve for n
n=log(1000/1.2)/log(1.05)
=137.84 (approx)
or about 137 years and 10 months.
Not forgetting that we all will probably be making a million dollars a month by then.
Related Questions
Math - Please check my work, thank you If $7,800 is deposited into an account ...
Math - After 3 years investment of 1200 compounded annually and an interest rate...
Math - you deposit $1000 at 3% per year.what is the balance at the end of one ...
Math - you deposit $1000 at 3% per year.what is the balance at the end of one ...
Correted Bob can you re-check? - So i pretty much had them right the first time ...
Finance - 1. $5000.00 compunded annually at 6% for 5 years= $6,691.1279? 2. $...
checking answers please help - 1. $5000.00 compunded annually at 6% for 5 years...
please check my answers - 1. $5000.00 compounded annually at 6% for 5 years= ...
Math - How much must you deposit in an account that pays 6% semi-annual interest...
Math - Suppose Kevin and Jill both deposit $4000 into their personal accounts. ...
For Further Reading
