Discover the best answers at Westonci.ca, where experts share their insights and knowledge with you. Explore a wealth of knowledge from professionals across various disciplines on our comprehensive Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.
Sagot :
Answer:
16 years
Step-by-step explanation:
Let us assume that he would received the first payment after t years
So
The following formula should be used
PV = P ÷ (1 + r)^t + P ÷ (1 + r)^t+5
$2,606 = $2,500 ÷ (1 + 0.05)^t + $2,500 ÷ (1 + 0.05)^t + 5
$2,606 = $2,500 ÷ 1.05^t (1 + 1 ÷ (1.05)^5)
1.05^t = $2,500 ÷ $2,606 (1.7835) = 1.71098
t = ln(1.71098) ÷ ln(1.05)
= 11
Therefore he would be received the second payment after
= 11 + 5
= 16 years
We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.
