It will take approximately 18.8 years for a $100 deposit to result in a future value of $600 if I can earn 10% on my deposit.

Question

Quizplus · Accepted Answer

This can be calculated using the formula for compound interest, which is:

FV = PV*(1+r)^n

Where FV is the future value, PV is the present value, r is the interest rate, and n is the number of compounding periods.

In this case, we know that PV = $100, FV = $600, and r = 10%. We can solve for n using algebra:

600 = 100*(1+0.1)^n
6 = 1.1^n
log(6) = n*log(1.1)
n = log(6)/log(1.1)
n = 18.8 (rounded)

Therefore, it will take approximately 18.8 years for a $100 deposit to result in a future value of $600 with an interest rate of 10%.

It Will Take Approximately 18