Question

Jill currently has $300,000 in a brokerage account. The account pays a 10 percent annual interest rate. Assuming that Jill makes no additional contributions to the account, how many years will it take for her to have $1,000,000 in the account?

Answer 1

Answer:

n = 12.63 year

Explanation:

Present Value = $300,000

Future Value = $1,000,000

Annual Interest Rate = 10%

Period = n years

Present Value * (1 + Interest Rate)^Period = Future Value

$300,000 * (1 + 0.10)^n = $1,000,000

1.10^n = 3.333

taking log on both side

n * ln(1.10) = ln(3.333)

n = 12.63 year