Question

You expect to receive $3,900 upon your graduation and will invest your windfall at an interest rate of .59 percent per quarter until the account is worth $5,350. How many years do you have to wait until you reach your target account value? rev: 09_18_2019_QC_CS-181155 Multiple Choice 13.43 years 11.76 years 12.54 years 14.47 years 13.55 years

Answer 1

Given,

Present value = $3900

Future value = $5350

Interest rate per quarter (r) = 0.59% or 0.0059

Solution :-

Thus you have to wait 13.43 years until you reach your target account value.