Question

How long will it take for $1,000 to amount to $10,000 if invested at 6% compounded monthly? Express the answer in years, rounded to two decimal places

Answer 1

Answer----38.45 Years

The effective interest rate for monthly compounding of 6% comes to 6.17% .

All calculations are done using 6.17% as annual rate.

Number of years=	38years+	(10000-9729.02)/600.28
Number of years=	38years+	(10000-9729.02)/600.28
Number of years=	38years+	0.451423
Number of years=	38.45 years

.

Year	Beginning balance	Interest earned	Ending balance
1	$ 1,000.00	$     61.70	$    1,061.70
2	$ 1,061.70	$     65.51	$    1,127.21
3	$ 1,127.21	$     69.55	$    1,196.76
4	$ 1,196.76	$     73.84	$    1,270.60
5	$ 1,270.60	$     78.40	$    1,348.99
6	$ 1,348.99	$     83.23	$    1,432.22
7	$ 1,432.22	$     88.37	$    1,520.59
8	$ 1,520.59	$     93.82	$    1,614.41
9	$ 1,614.41	$     99.61	$    1,714.02
10	$ 1,714.02	$ 105.76	$    1,819.78
11	$ 1,819.78	$ 112.28	$    1,932.06
12	$ 1,932.06	$ 119.21	$    2,051.27
13	$ 2,051.27	$ 126.56	$    2,177.83
14	$ 2,177.83	$ 134.37	$    2,312.20
15	$ 2,312.20	$ 142.66	$    2,454.86
16	$ 2,454.86	$ 151.47	$    2,606.33
17	$ 2,606.33	$ 160.81	$    2,767.14
18	$ 2,767.14	$ 170.73	$    2,937.87
19	$ 2,937.87	$ 181.27	$    3,119.14
20	$ 3,119.14	$ 192.45	$    3,311.59
21	$ 3,311.59	$ 204.33	$    3,515.91
22	$ 3,515.91	$ 216.93	$    3,732.85
23	$ 3,732.85	$ 230.32	$    3,963.16
24	$ 3,963.16	$ 244.53	$    4,207.69
25	$ 4,207.69	$ 259.61	$    4,467.30
26	$ 4,467.30	$ 275.63	$    4,742.94
27	$ 4,742.94	$ 292.64	$    5,035.57
28	$ 5,035.57	$ 310.69	$    5,346.27
29	$ 5,346.27	$ 329.86	$    5,676.13
30	$ 5,676.13	$ 350.22	$    6,026.35
31	$ 6,026.35	$ 371.83	$    6,398.18
32	$ 6,398.18	$ 394.77	$    6,792.95
33	$ 6,792.95	$ 419.12	$    7,212.07
34	$ 7,212.07	$ 444.98	$    7,657.06
35	$ 7,657.06	$ 472.44	$    8,129.50
36	$ 8,129.50	$ 501.59	$    8,631.09
37	$ 8,631.09	$ 532.54	$    9,163.62
38	$ 9,163.62	$ 565.40	$    9,729.02
39	$ 9,729.02	$ 600.28	$ 10,329.30