If you invest $1500 at a rate of 7% per year, how many years will it take to earn at least $1050 in interest?

1 Answer
Apr 24, 2018

Answer:

#8#

Explanation:

The formula is compound interest rate:
#P(1+ r/n)^(n*t) = A#
#P# is Principal amount;
#r# is interest rate;
#n# is number of compounds per year/months and etc.
#t# is time in years/months and etc.
#A# is last Amount

So
#1500*(1+0.07/365)^(365*t)=(1500+1050)#

#1500*(1+0.07/365)^(365*t)=2550#

It is hard to calculate. That is why you can apply for Google. There is the compound interest rate calculator on the web.

As a result, the answer or #t# is #8#
It means that you have to wait for #8# years in order to earn at least extra #$1050#.