(Advanced analysis) Indy has $2,000 invested in a ﬁnancial asset earning an annually compounded interest rate of 6 percent. Approximately how many years will it take before Indy's investment is
Worth $5,000?
A) 25
B) 10.5
C) 12.8
D) 15.7

Question

Quizplus · Accepted Answer

To find the number of years required for an investment to grow to a certain amount with compound interest, we use the formula: Future Value = Present Value * (1 + rate)^n. Here, $5,000 = $2,000 * (1 + 0.06)^n. Solving for n gives approximately 15.7 years.

(Advanced Analysis) Indy Has $2,000 Invested in a ﬁNancial Asset