Question

Amber wants to know how long it will take for her $4,000 deposit to grow to be worth $4,500 if she can earn 5% compound interest. How long will it take assuming she does not make any additional deposits

Answer 1

The number of years that should be taken for making an additional deposit is 2.41 years.

Given that,

• The present value is $4,000.

• The future value is $4,500.

• The rate of interest is 5%.

The following formula should be used:

Future value = Present value × (1 + rate of interest)^number of years

$4,500 = $4,000 × (1 + 0.05)^number of years

So, the number of years should be 2.41.

Therefore we can conclude that The number of years that should be taken for making an additional deposit is 2.41 years.

Learn more about the present value here: brainly.com/question/17322936