Question

Solve for the unknown number of years in each of the following (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.): Present Value $21,500 Interest Rate 11% Future Value $430,258 Years - ?

Answer 1

Answer:

time t = 28.72 years

Explanation:

given data

Present Value =  $21,500

Interest Rate =  11%

Future Value = $430,258

solution

we will apply here future value formula to find out time period that is express as

future value = present value × $(1+r)^{t}$   .....................1

put here value and we will get

$430,258 = $21,500  × $(1+0.11)^{t}$

20.012 =  $(1.11)^{t}$

take ln both side

ln (20.012) = t × ln(1.11)

t = $\frac{2.9963}{0.1043}$  

time t = 28.72 years