Question

How many years will it take for an initial investment of $200 to grow to $544 if it is invested today at 8% compounded annually?

Answer 1

we have to assume year in order to get the answer.
i do my calculations on calculator so idk how to explain this to you. but when 1.08 is multiplied by 1.08 ..13 times it gives 2.72 as answer. and thats what we need in order to cancel both right and left side values.
hope you understand the explanation. If you have any query please feel free to ask : -)