How many years will it take a $5000 investment to reach $7500 at an 8% interest rate?
Expert-Verified Answer
Answer. 5 years will it take for an investment of $5000 to grow to $7500 if it earns 10% simple interest per year.
Expert-Verified Answer
It will take 10.14 years for $5,000 to grow to $7,500 if it is invested at 8% compounded semiannually. However, if it is compounded monthly, it will take a much longer time, 729.84 years.
Final answer:
The time required for an investment of $5000 to grow to $7800 at an interest rate of 7.5% per year, compounded quarterly, is approximately 5.68 years.
Final answer:
It will take approximately 15.27 years to increase the $2,200 investment to $10,000 at an annual interest rate of 6.5%.
Answer and Explanation: The future value of a $1000 investment today at 8 percent annual interest compounded semiannually for 5 years is $1,480.24.
Substituting the given values, we have: 9000 = 4000(1 + 0.06/4)^(4t). Solving for t gives us t ≈ 6.81 years. Therefore, it will take approximately 6.76 years to grow from $4,000 to $9,000 at a 7% interest rate compounded monthly, and approximately 6.81 years at a 6% interest rate compounded quarterly.
The future value of $800 at 8 percent after six years equals $1,269.50. Where, PV = Present value = $800. i = interest rate = 8%
The future value of the investment is $12,968.71. It is the accumulated value of investing $5,000 for 10 years at a rate of 10% compound interest.
If a $1,000 investment is held for five years in a savings account with 10% simple interest paid annually, the FV of the $1,000 equals $1,000 × [1 + (0.10 x 5)], or $1,500.
How long will it take for you to get $100000.00 if you invest $5000.00 in an account giving you 9.7% interest compounded continuously?
t = ln(100,000/5,000)/0.097 ≈ 12.35 years Using the formula for continuous compounding interest, it will take approximately 12.35 years for a $5,000 investment to grow to $100,000 at an interest rate of 9.7% compounded continuously.
Expert-Verified Answer. it will take approximately 5.3 years for 5,000 to grow to 7,000 if it is invested at 6% compounded quarterly by using formula of compound interest.
To calculate how long it will take for $5000 to grow to $8000 with an annual compound interest rate of 7.5%, we use the compound interest formula, and solve for time 't', which is approximately 6.5 years. Therefore, the correct answer is option c. 6.5 years.
To turn $5,000 into more money, explore various investment avenues like the stock market, real estate or a high-yield savings account for lower-risk growth. Investing in a small business or startup could also provide significant returns if the business is successful.
How the Rule of 72 Works. For example, the Rule of 72 states that $1 invested at an annual fixed interest rate of 10% would take 7.2 years ((72/10) = 7.2) to grow to $2. In reality, a 10% investment will take 7.3 years to double (1.107.3 = 2).
Hence, if a two-year savings account containing $1,000 pays a 6% interest rate compounded daily, it will grow to $1,127.49 at the end of two years.
The table below shows the present value (PV) of $3,000 in 20 years for interest rates from 2% to 30%. As you will see, the future value of $3,000 over 20 years can range from $4,457.84 to $570,148.91.
Over the years, that money can really add up: If you kept that money in a retirement account over 30 years and earned that average 6% return, for example, your $10,000 would grow to more than $57,000. In reality, investment returns will vary year to year and even day to day.
| Discount Rate | Present Value | Future Value |
|---|---|---|
| 5% | $1,000 | $2,653.30 |
| 6% | $1,000 | $3,207.14 |
| 7% | $1,000 | $3,869.68 |
| 8% | $1,000 | $4,660.96 |
| Particulars | Amount |
|---|---|
| Present value | 5,000 |
| Future value | 7,000 |
| Time, n | 6 |
| Rate of return | r |
How much will $100,000 grow in 25 years?
Passive Growth Over 25 Years
For example, a 10% average annual rate of return could transform $100,000 into $1 million in approximately 25 years, while an 8% return might require around 30 years.
Answer and Explanation:
The calculated value of the annual rate of return on the given investment is 13.7%. The annual rate of return on the investment is given by: = ( Amount due in 5 years Amount invested today ) 1 Number of Years − 1.
| Discount Rate | Present Value | Future Value |
|---|---|---|
| 2% | $100 | $121.90 |
| 3% | $100 | $134.39 |
| 4% | $100 | $148.02 |
| 5% | $100 | $162.89 |
5000 will amount to. 12970 in years at rate of interest per annum.
⇒ R = 100/8 = 12.5% per annum.
