Suppose that you have $10,000 cash today and can invest it at 8% compound interest each year. How many years will it take you to become a millionaire?
2007-01-23 04:41:25 · 4 answers · asked by Robert Z 1 in Social Science ➔ Economics
10000(1.08)^x=1000000
1.08^x=100
xln1.08=ln100
x=ln100/ln1.08=59.9 years
2007-01-23 04:48:19 · answer #1 · answered by epbr123 5 · 0⤊ 0⤋
In this case, you would have to multiply $10000 by (1 + (6.8% / 10)) ^ 27*10 to get your total of $62325.51. After taxes, that's about 5 times what you invested! Of course, because of inflation rates, it won't be worth much anymore.
2016-03-28 22:49:56 · answer #2 · answered by Anonymous · 0⤊ 0⤋
$10,000 = (($1,000,000)/(1.08^x))
Solve for x; that will give you the number of years.
2007-01-23 05:07:04 · answer #3 · answered by Anonymous · 0⤊ 0⤋
twenty three !
2007-01-23 04:45:03 · answer #4 · answered by rottentothecore 5 · 0⤊ 0⤋