Answer:
~14.2066 years
Step-by-step explanation:
assuming p.a. means per annual:
$500,000 with intrest rate 5% per year. how many years for money to become $1,000,000?
with annual intrest, a percentage of the money you invest is added to your balance every year
set up equation: (original money*(1+ intrest rate))^x=goal money
there is a 1 because you are adding on to the original (100%) amount of money
x is the number of years untill goal money. is an exponent because it depends on the previous years balance. note that amount of money gained will change per year.
50,000*(1+0.05)^x=1,000,000
solve------
divide by 50,000 both sides
1*(1+0.05)^x=2
(1+0.05)^x=2
(1.05)^x=2
apply log_1.05
log_1.05 (1.05)^x= log_1.05 2
x= log_1.05 2
use calculator to approx
~14.2067
hope this helps
