Answered

Welcome to Westonci.ca, the place where your questions are answered by a community of knowledgeable contributors. Experience the ease of finding accurate answers to your questions from a knowledgeable community of professionals. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

You expect to receive a payout from a trust fund in 3 years. The payout will be for $10,200. You plan to invest the money at an annual rate of 6.2 percent until the account is worth $17,800. How many years do you have to wait from today

Sagot :

facundobuzzetti

Answer:

n= 12.25 years

Explanation:

Giving the following information:

Present value= $10,200

Future value= $17,800

Interest rate= 6.2%

First, we need to calculate the number of years it will take the investment to reach $17,80. We need to use the following formula:

n= ln(FV/PV) / ln(1+i)  

n= ln(17,800/10,200) / ln(1.062)

n= 9.25 years

Now, the total number of years:

n= 9.25 + 3

n= 12.25 years

We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.