An alternative to using logarithms to determine the amount of time that it would

Question

An alternative to using logarithms to determine the amount of time that it would take for a lump-sum investment at a particular compound interest rate to grow to a certain value would be to use a spreadsheet to list the value of the investment after each compounding period for as many times as is necessary.

Suppose that you receive $500 as a gift and decide to invest it in a fund that pays an interest rate of 7.16 compounded quarterly. Determine how long it will take for this investment to grow to $25,000 by showing the value of the investment after each compounding period.

Explanation / Answer

$25,000 = $500*CVF(1.79,n)

n or number of periods = 55.12 years

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