Answer:
it will take approximately 6.32 annum(years) to reach $40000
Step-by-step explanation:
9.5% of $25000 = $2375
$40000 - $25000 = $15000 so you need to make an interest of $15000 overall to reach $40000
since you make $2375 each year therefore
$15000 ÷ $2375 will give you the number of years to reach $40000
hence 15000 ÷ 2375 = 6.315
approximately = 6.32 annum(years)
