Answer:
It will take 8 years and 281 days.
Explanation:
Giving the following information:
Jon is planning to invest $15,000 at a 6% interest rate. He needs $25,000 in total for a purchase he plans to make.
To calculate the time required to reach the goal, we need to isolate the number of years from the final value formula:
FV= PV*(1+i)^n
Isolating n:
n=[ln(FV/PV)]/ln(1+r)
n= [ln(25,000/15,000) / ln(1+0.06)
n= 8.77 years
To bo more accurate:
0.77*365= 281
It will take 8 years and 281 days.
