you texpect to receive a payout from a trust fund in 3 years. The payout will be for $11000. You plan to invest the money at an
annual rate of 6.5 percent until the account is worth $19000. how many years do you have to wait from today?
1 answer:
Answer:
11.68 years
Explanation:
For computing the number of years first we have to applied the NPER formula i.e to be shown in the attachment below:
Given that,
Present value = $11,000
Future value = $19,000
Rate of interest = 6.5%
PMT = $0
The formula is shown below:
= NPER(Rate;PMT;-PV;FV;type)
The present value come in negative
So, after applying the above formula, the number of years is 8.68
Now after 3 years, it would be
= 8.68 + 3
= 11.68 years
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