You decide you want your child to be a millionaire.You have a son today and you deposit $15,000 in an investment account that earns 9% per year.The money in the account will be distributed to your son whenever the total reaches $1,000,000.How old will your son be when he gets the money (rounded to the nearest year)?
A) 82 years
B) 74 years
C) 60 years
D) 49 years

Question

Quizplus · Accepted Answer

The amount of money in the account after n years is given by the formula A = P(1 + r)^n, where P is the principal (the initial amount deposited), r is the annual interest rate, and n is the number of years.In this case, P = $15,000, r = 9%, and A = $1,000,000. So, we can solve for n by plugging these values into the formula and solving for n:1,000,000 = 15,000(1 + 0.09)^n1,000,000 / 15,000 = (1 + 0.09)^n66.6666666667 = (1.09)^nlog(66.6666666667) = log(1.09)^nlog(66.6666666667) / log(1.09) = nn = 49.0000000001So, your son will be 49 years old when he gets the money.

You Decide You Want Your Child to Be a Millionaire