Savings account how long will it take an initial deposit of $1500 to increase in value to $2500 in a saving account with an apy of 3.1%? assume the interest rate remains constant and no additional deposits or withdrawals are made.
Solution: FV = $2500 PV = $1500 RATE = r = 3.1% To find = time to reach $2500 from $1500 = N Formula = ln(FV/PV) / ln(1+r) ln(2500/1500) / ln(1+0.031) = 16.73 So, it will take 16.73 years to reach $2500 from initial deposit of $1500.
