Solving for Time How many years will it take $100 to grow to $1,000 with an annual interest rate of 8 percent?
A)9.00 years
B)10.00 years
C)29.92 years
D)33.35 years

Question

Quizplus · Accepted Answer

We can solve for time using the formula:
future value = present value x (1 + interest rate)^time
Substituting the given values, we get:
1000 = 100 x (1 + 0.08)^time
Simplifying this equation, we get:
10 = (1.08)^time
Taking the logarithm of both sides, we get:
log 10 = log (1.08)^time
log 10 = time x log 1.08
Solving for time, we get:
time = log 10 / log 1.08
time = 29.92 years (rounded to two decimal places)
Therefore, the best choice is C.

Solving for Time How Many Years Will It Take $100