Asked by Edith
Sara has $2,500,000 and can earn 12.50 percent per year. If Sara plans on retiring when she has tripled her money, she can retire in how many years.
Answers
Answered by
Reiny
If she has 2500,000 and she gets 12.5% per year in interest, she would earn $312,500 per year right now.
Heck!, she should retire right now
but according to your question
2.5 million(1.125)^n = 7.5 million
1.125)^n = 3
n log 1.123 = log3
n = appr 9.3 years
Heck!, she should retire right now
but according to your question
2.5 million(1.125)^n = 7.5 million
1.125)^n = 3
n log 1.123 = log3
n = appr 9.3 years
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