### Home > A2C > Chapter 9 > Lesson 9.3.2 > Problem 9-157

9-157.

A long lost relative died and left you $15,000! Your parents say that you need to save the money for college, so you put it an account that pays 8% interest compounded annually. How many years will it take until your account is worth $25,000? Homework Help ✎

Remember the annual compound interest formula.

A = *P*(1 + *r*)^{t}

First substitute the values into the equation.

25000 = 15000(1.08)^{t}

Divide both sides by 15000.

Remember the rules of logarithms and take the log of both sides.

Solve for *t*.

The account will be worth 25000 in between 6 and 7 years.

*t* = 6.64