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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. With his original investment and interest rate, it will take _____ years to accumulate the desired amount.

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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.