Metropolis currently has $1,150,000 in cash. How long would it take them to accumulate $2,000,000 in cash? Assume an interest rate of 5%.

IDK, if the purpose that you took an economics course is for wealth. Then the answer to that question is: Is the CEO smart or not? If he/she is smart then he could make it in a day or even 6 hours. If not, it will be impossible. He'll file a chpater 11 even before George Washington was elected as president.

Metropolis currently has $1,150,000 in cash. How long would it take them to accumulate $2,000,000 in cash? Assume an interest rate of 5%.

To calculate the time it would take for Metropolis to accumulate $2,000,000 in cash with an interest rate of 5%, we can use the concept of compound interest.

Compound interest is calculated using the formula:
A = P(1 + r/n)^(nt),

where:
A is the future value of the investment (in this case, $2,000,000),
P is the principal amount (initial cash in this case, $1,150,000),
r is the annual interest rate (5% or 0.05),
n is the number of times the interest is compounded per year (assuming yearly compounding in this case),
t is the number of years.

Now, we need to rearrange the formula to solve for t:

t = (log(A/P))/(n * log(1 + r/n))

Let's plug in the given values to calculate the time it would take:

t = (log(2000000/1150000))/(1 * log(1 + 0.05/1))

Using a calculator or software, we can find that log(2000000/1150000) = 0.58496, and log(1 + 0.05/1) = 0.04879.

t = 0.58496 / (1 * 0.04879)
t = 12 years (rounded to the nearest whole number).

Therefore, it would take Metropolis approximately 12 years to accumulate $2,000,000 in cash with an interest rate of 5%.