Your investment account pays 8.0%, compounded annually. if you invest $5,000 today, how many years will it take for your investment to grow to $9,140.20?

8 years.

Explanation:

We have been given that an investment account pays 8.0%, compounded annually. We are asked to find the number of years it will take for the investment to grow to $9,140.20, if you invest $5,000 today.

We will use compound interest formula to solve our given problem.

, where.

A = Final amount,

P = Principal amount,

r = Annual interest rate in decimal form,

n = Number of times interest is compounded per year,

t = Time in years.

Upon substituting our given values in above formula, we will get:

Now, we will take natural log of both sides.

Using log property , we will get:

Therefore, it will take approximately 8 years for the investment to grow to $9,140.20.

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