Question

How many years it will take Judy to accumulate $30,000 if she invest $25,869 at 2.5% rate?

Answer 1

Solution: The Answer is 6 Years

Explanation:

1) It will take 6 years to accumulate $30,000, if she invest $25,869 @ 2.5% per year.

2) Here we considered compounding annually.

Year	Opening Balance[a]	Interest 2.5%[b= a*2.5%]	Closing Balance[a+b]
1	$                               25,869	$                                         647	$                          26,516
2	$                               26,516	$                                         663	$                          27,179
3	$                               27,179	$                                         679	$                          27,858
4	$                               27,858	$                                         696	$                          28,555
5	$                               28,555	$                                         714	$                          29,268
6	$                               29,268	$                                         732	$                          30,000