You have $2,158 today in your savings account. How long must you wait for your savings to be worth $4,000 if you are earning 2.1 percent interest, compounded annually?
A) 26.68 years
B) 29.69 years
C) 32.13 years
D) 33.33 years
E) 34.14 years

Question

Quizplus · Accepted Answer

To find the number of years required for the savings to grow to $4,000, we use the formula for compound interest: $ A = P(1 + r)^t $. Here, $ A = 4000 $, $ P = 2158 $, $ r = 0.021 $. Solving for $ t $, we get $ t = \frac{\log(4000/2158)}{\log(1.021)} \approx 29.69 $ years.

You Have $2,158 Today in Your Savings Account