Question

You just won $17,500 and deposited your winnings into an account that pays 7.1 percent interest, compounded annually. How long will you have to wait until your winnings are worth $50,000?

A.) 15.73 years

B.) 15.1 years

C.) 15.52 years

D.) 15.31 years

Answer 1

Present Value of amount Invested = $17,500

Future Value of Invested amount = $50,000

Calculating the number of years it will take to accumulate fiture worth using Excel "NPER" function:-

No of years = 15.31

Option D

If you need any clarification, you can ask in comments.    

If you like my answer, then please up-vote as it will be motivating