Question
a person invests $2000 at 4% per year comoundes semi-annually for 25 years, determine how long it will take for the investment to reach $5000, using the tvm solver in your calulator and using an exponential funtion.
Answers
Reiny
I have no idea what your "tvm solver" on your calculator but doing it by exponential function ....
5000 = 2000(1.02)^n
2.5 = 1.02^n
log 2.5 = log (1.02^n)
log 2.5 = n log1.02
n = log2.5/log1.02 = 46.3 half-years
or appr. 23.1 years
5000 = 2000(1.02)^n
2.5 = 1.02^n
log 2.5 = log (1.02^n)
log 2.5 = n log1.02
n = log2.5/log1.02 = 46.3 half-years
or appr. 23.1 years