How many years will it take $145,000 to grow to $675,000 if it is invested in an account with a quoted annual interest rate of 9% with monthly compounding of interest?
Information provided:
Future value (FV)= $675,000
Present value (PV)= $145,000
Monthly interest rate (I/Y)= 9%/12 = 0.75%
Enter the below in a financial calculator to compute the time taken to grow the investment to $675,000:
FV= 675,000
PV= -145,000
I/Y= 0.75
Press the CPT key and N to compute the time taken to grow the investment to $675,000.
The value obtained is 205.8319
Therefore, It takes 205.8319 /12 = 17.15 years for the investment to grow to $675,000.
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