A fund offers a return of 3.5% each year. A person with 400000 wants to build up a corpus of 1 million. For how many years should he remain invested.

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The returns offered by the fund are 3.5% per year. Let the time that a person with $400000 has to stay invested for to accumulate $1000000 be t.

`1000000 = 400000*(1 +3.5/100)^t`

=> `2.5 = (1.035)^t`

Take the logarithm of both the sides

log 2.5 = log(1.035)^t

=> log 2.5 = t*log1.035

=> t = `log 2.5/log 1.035`

=> t `~~` 26.635

**The person should stay invested for 27 years for the sum of $400000 to grow to $1 million**

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