Question
I have a question on a problem that I can't figure out. Solve for the unknown number of years for the following. Present Value -
I have a question on a problem that I can't figure out.
Solve for the unknown number of years for the following.
Present Value - $650
Interest Rate - 10%
Future Value - $1,367
The formula we were given and supposed to use is: Time = In(FV/PV) / In(1+r)
The answer for the problem is 10.14 and I have no idea how or why it is this answer as I have been trying to input the numbers and have never been able to come up with that answer. What does the In even mean in the formula? I thought it was interest rate but that is usually designated by the r. Any step by step help with this formula would be great and appreciated. Thanks.
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