Question

You expect to receive $6,000 at graduation in two years. You plan on investing it at 8 percent until you have $91,000. How long will you wait from now? (Do not round your intermediate calculations.)

41.81 years

35.33 years

33.33 years

37.33 years

41.06 years

Answer 1

Calculate time period it will take the amount to become 91,000 and than add 2 years.

Option 1 :

Option 2 :

On a financial calculator :

Put PV = -6000

FV = 91,000

I/Y = 8

and press CPT and N

That will give you answer equal to 35.33 years

Now the amount is to be receibed in 2 years. Therefore just add 2 years in the time period i.e. 37.33 years.

The correct option is 37.33 years

If you have any doubt, you can ask me in the comment section