Question

Present Value	Years	Interest Rate		Future Value
$470		8	%	$987
720		12		1,704
17,500		18		275,671
20,600		14		303,827

Solve for the unknown number of years in each of the following (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.):

  

Answer 1

Future value = Present value*(1+Interest rate)^(Years)

(Future value/Present value) = (1+Interest rate)^(Years)

ln(Future value/Present value) = Years*ln(1+Interest rate))

Years = ln(Future value/Present value)/ln(1+Interest rate))