Bogut just rec'd a signing bonus of $1,000,000. He plan to invest this in a fund that will earn 8% compound annually. Bogut plans to establish the AB Foundation once the fund grows to $1,999,000, how many years until he can establish the foundation?
we have 1000000*(1.08)^n = 1999000
n ln(1.08 ) = ln(1.999)
n = n(1.999)/ln(1.08) = 0.692647/0.076961= 8.99997 = 9
Answer = 9 years
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