How long will it take $10,000 to grow to $50,000 if it earns 10% interest compounded semiannually?
A) 17 years
B) 8.5 years
C) 33 years
D) 16.5 year

Name: How long will it take $10,000 to grow to $50,000 if it earns 10% interest compounded semiannually? A) 17 years B) 8.5 years C) 33 years D) 16.5 year
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Question

Quizplus · Accepted Answer

The formula for compound interest is $ A = P(1 + \frac{r}{n})^{nt} $. Here, $ A = 50000 $, $ P = 10000 $, $ r = 0.10 $, and $ n = 2 $. Solving for $ t $, we get $ t \approx 16.5 $ years.

How Long Will It Take $10,000 to Grow to $50,000