How long will it take $50,000 placed in a savings account at 10% interest to grow into $75,000?
A)4.25 years
B)5.00 years
C)5.25 years
D)5.50 years
E)4.75 years

Question

Quizplus · Accepted Answer

The correct answer is A.The formula for compound interest is A = P(1 + r/n)^(nt), where A is the final amount, P is the principal, r is the annual interest rate, n is the number of times per year that the interest is compounded, and t is the number of years.In this case, we have P = $50,000, A = $75,000, r = 10%, n = 1 (since the interest is compounded annually), and we want to find t.Plugging these values into the formula, we get:$75,000 = $50,000(1 + 0.10/1)^(1*t)Dividing both sides by $50,000, we get:1.5 = (1.10)^tTaking the logarithm of both sides, we get:log(1.5) = t*log(1.10)Solving for t, we get:t = log(1.5) / log(1.10) = 4.25 yearsTherefore, it will take 4.25 years for $50,000 placed in a savings account at 10% interest to grow into $75,000.

How Long Will It Take $50,000 Placed in a Savings