# Answer to Question #3305 in Statistics and Probability for atakan oluwafemi

Question #3305

How many years will it take for $240000 to amount to $288000 at 8% compound interest per annum?

Expert's answer

The most basic formula to calculate future value is

FV = PV(1 + i)

(1 + i)

Hence

n = log

In our case

n = (ln 288,000 - ln 240,000)/ ln (1 + 0.08) = 2.37

FV = PV(1 + i)

^{n}, where i is the compound interest, n is number of periods.(1 + i)

^{n}= FV/PVHence

n = log

_{(1+ i)}(FV/PV) = (ln FV - ln PV)/ln (1 + i)In our case

n = (ln 288,000 - ln 240,000)/ ln (1 + 0.08) = 2.37

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