Formula:
• A= P *e^(rt)
Where:
A = future value of investment = 17,700
P= principal investment = 8850
r= interest rate = 8% = 8/100 =0.08 (decimal form)
t = years
Replacing:
17,700 = 8,850 * e^(0.08t)
Solve for t:
17,700/8,850 = e^(0.08t)
2 = e^(0.08t)
Take natural log
Ln 2 = Ln e^(0.08t)
Ln2= 0.08t * Ln e
Ln2 = 0.08t
Ln2/0.08 = t
t = 8.66 years
Answer:
It will take 8.66 years for the balance to reach $17,700.
