Answer:
It will take 16.89 years for the account to increase to $2 million
Explanation:
Present Value = $400,000
Nominal annual interest rate = 10% compounded annually
Future Value = $2,000,000
Number of compounding periods = ?
Formula:
Future Value = Present Value * (1+Nominal annual interest rate)∧Number of compounding periods
$2,000,000 = $400,000 * (1+0,1)∧Time
We can then proceed to solve the equation:
16.89
