Answer:
23.02 years
Explanation:
The expression that describes the future value of an investment (P) at an annual rate (r) for a period of n years, compounded annualy is:
[tex]FV = P*(1+r)^n[/tex]
If Rachel wants to accumulate $6,500 with an investment of $1,700 at 6% per year, the length of her investment, in years, must be:
[tex]6,500 = 1,700*(1+0.06)^n\\1.06^n = 3.8235\\n=\frac{log(3.8235)}{log(1.06)}\\n=23.02\ years[/tex]
It will take Rachel roughly 23.02 years to accumulate $6,500.
