When you were born, your parents opened an investment account in your name and deposited $1,500 into the account. the account has earned an average annual rate of return of 5.3percent. today, the account is valued at $42,856. how old are you?

Question

Erick Goodwin

Business

7 January, 06:52

When you were born, your parents opened an investment account in your name and deposited $1,500 into the account. the account has earned an average annual rate of return of 5.3percent. today, the account is valued at $42,856. how old are you?

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Answers (1)

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Danielle Carey · Answer 1

To answer this question we are solving for T, time ... or age in this case!

Ending balance = beginning balance x (1 + annual rate of return) T

$42,856 = $1,500 x (1 + 0.53) t

T = 64.91 years

Rounding to the nearest year, you are about to turn 65 years old!