Solve for the unknown number of years in each of the following (Enter rounded an

Question

Solve for the unknown number of years in each of the following (Enter rounded answers as directed, but do not use rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16)):

Present Value     Years       Interest Rate      Future Value

$ 450                                          8 %                 $ 1,305

2,141                                          6                        3,900

33,205                                       11                    389,120

32,900                                       18                    204,260

Explanation / Answer

Time = In(FV/PV)/In(1+r)

A.

Time = In(1305/450)/In(1+.08)

=13.83 years

B.

Time = In(3900/2141)/In(1+.06)

=.599703543/.058268908

=10.29 years

C.

Time = In(389120/33205)/In(1+.11)

=23.58 years

D.

Time = In(204260/32900)/In(1+.18)

=11.03 years

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