# Faisal has $17,000 in his savings account and can save an additional $5,100 per year. If interest...

## Question:

Faisal has $17,000 in his savings account and can save an additional $5,100 per year. If interest rates are 12%, how long will it take his savings to grow to $52,000??

## Time to Double:

If you are interested in finding out how long it will take for an investment to double, you can use the Rule of 72. According to this rule. the years needed are 72 / *r*, where *r* is the interest rate in percentage. For example, if *r* = 10%, it will take 72 / 10 = 7.2 years.

## Answer and Explanation:

We know:

- PV = initial or present value = $17,000
*r*= 12% = interest rate- PMT = payment = $5,100
- FV = future value = 52.000

We are looking for number...

See full answer below.

Become a Study.com member to unlock this answer! Create your account

View this answer#### Ask a question

Our experts can answer your tough homework and study questions.

Ask a question Ask a question#### Search Answers

#### Learn more about this topic:

Get access to this video and our entire Q&A library

How to Calculate Future Value: Formula & Example

from Financial Accounting: Help and Review

Chapter 5 / Lesson 16
55K

#### Related to this Question

Find the following values assuming a regular, or...

If you deposit $8000 in a bank account that pays...

Jackie Rich would like to buy a $22,000 Toyota...

Stephanie Watson plans to make the following...

Janet Boyle intends to deposit $ 360 per year in a...

As part of your financial planning, you wish to...

You're prepared to make monthly payments of $360,...

Part 1) At age 30 you invest $1,000 that earns 8...

Time for a Lump Sum to Double - How long will it...

On January 1, 2013, you decided to take a trip...

The State of Confusion wants to change the current...

The Florida lottery agrees to pay the winner...

#### Explore our homework questions and answers library

Browse
by subject