It will take approximately 9.6 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

Using the formula for compound interest, $FV = PV(1 + r)^n$, where FV is the future value, PV is the present value, r is the annual interest rate, and n is the number of years, we can solve for n. Plugging in the values, $600 = 100(1 + 0.10)^n$, simplifying to $6 = (1.10)^n$. Solving for n using logarithms gives $n = \log_{1.10}(6)$, which is approximately 16.61 years, not 9.6 years.

It Will Take Approximately 9