How long does it take to become a millionaire? A $500,000 investment will hit $1 million in 39 years at an annual interest rate of 1.79%. How long will it take to become a millionaire if the annual interest rate increases to 2.34%?

It will take 30.10 year

Explanation:

We have given initial investment $500000

Future value = $ 1 million = $1000000

Rate of interest r = 1.79 %

We have to find the time taken to reach the amount $1000000

We know that future value is equal to

Taking log both side

n×0.0077 = 0.3010

n = 39.09 year

Now in second case rate of interest

r = 2.34 %

So

taking log both side

log 2 = n log 1.0234

n×0.01 = 0.3010

n = 30.10 year

answer; common market;

a

explanation:

reducti0n

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