Final answer: To reach $7,500 with an 8% interest rate, it would take approximately 9.7 years. Explanation: To solve this problem, we can use the formula for compound interest: Future Value = Principal * (1 + interest rate)^time In this case, the initial investment is $5,000, the desired future value is $7,500, and the interest rate is 8%. Let's calculate the time it would take to reach that future value: $7,500 = $5,000 * (1 + 0.08)^time Dividing both sides of the equation by $5,000, we get: 1.5 = (1.08)^time Using logarithms, we can solve for time: log(1.5) = log((1.08)^time) time * log(1.08) = log(1.5) time = log(1.5) / log(1.08) Using a calculator, we find that time is approximately 9.7 years.
FAQs
How many years would it take a $5,000 investment to reach $7,500 at an 8% interest rate? - brainly.com? ›
Expert-Verified Answer
What is the time required for an investment of 5000 dollars to grow to 6000 dollars at an interest rate of 7.5 per year compounded quarterly ›Final answer:
To find the time required for an investment to grow to a certain amount, we can use the compound interest formula. In this case, it takes approximately 4 years for an investment of $5000 to grow to $6600 at an interest rate of 7.5% per year, compounded quarterly.
Final answer:
To find the time required for an investment of $4,000 to grow to $8,000 at an interest rate of 7.5% per year, compounded quarterly, we can use the compound interest formula. Plugging in the values and solving for Time gives us approximately 9.47 years.
5 years will it take for an investment of $5000 to grow to $7500 if it earns 10% simple interest per year.
How long will it take you to double your money if you invest $1000 at 8% compounded annually? ›For example, if an investment scheme promises an 8% annual compounded rate of return, it will take approximately nine years (72 / 8 = 9) to double the invested money.
What annual rate of return is earned on a $5000 investment when it grows to $7000 in six years? ›The correct option is C. 5.77%
| Particulars | Amount |
|---|---|
| Present value | 5,000 |
| Future value | 7,000 |
| Time, n | 6 |
| Rate of return | r |
$5,000 each year for 10 years if the interest rate is 8% ( end of period payment). You need to invest $33,550.4070 today earning 8% to have $5,000 every year for 10 years (first payment at the end of the year).
How long will it take 5000 to grow to 7000 if it is invested at 6% compounded quarterly? ›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. Therefore, it will take approximately 5.3 years for 5,000 to grow to 7,000 if it is invested at 6% compounded quarterly.
What is the time required for an investment of 5000 dollars to grow to 7800? ›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.
8800 = 5000(1 + 0.075/4)4t; t = 1/4(ln(8800/5000)/ln(1 + 0.075/4) = 7.6 years, can be answer 8 years? and we get t = 7.816 years.
What is the time required for an investment of 5000 dollars to grow to 7200? ›
Expert-Verified Answer
So, the time required for the investment to grow to $7200 is approximately 5.49 years. The question probable maybe: Find the time required for an investment of 5000 dollars to grow to 7200 dollars at an interest rate of 7.5 percent per year, compounded quarterly.
It will take 4.38 years to grow $5000 to $6500 if the investment earns interest rate of 6%/year compounded monthly. t = 4.38 years. A purchase made with the intention of creating income or capital growth is known as an investment. An asset's value increasing over time is referred to as appreciation.