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You currently have $15900. You plan on investing it at 7 percent per year until you...

You currently have $15900. You plan on investing it at 7 percent per year until you have $96800. How long will you wait until you achieve this goal? Enter the answer with 2 decimals (e.g. 1.23).

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Answer #1

We can calculate the time period, using the formula for calculation of the Future Value

Hence,

Future Value = Present Value * ( 1+ Rate of Interest /100 ) ^ Time Period

Let the time period be n years

$ 96,800 = $ 15,900 * ( 1+7/100) ^ n

$ 96,800 / $ 15,900 = (1.07)^ n

Taking log on both sides

log ($ 96,800 / $ 15,900) = n log (1.07)

or 0.784478233 = n* 0.029383777

or n = 0.784478233 /0.029383777

= 26.69766432

= 26.70 Years

Hence the correct answer is 26.70 Years

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