Answer to Question #308650 in Financial Math for Shiv

Question

How long does it take for 900 to accumulate to 1000 under an interest rate of 4% per annum?

Answer 1

$A=P(1+rt)$

$1000=900(1+0.04×t)$

$\frac{1000}{900}=1+0.04t$

$\frac{10}{9}-1=0.04t$

$\frac{1}{9}=0.04t$

$t=\frac{1}{9}÷0.04=2.78 years$