Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Forensic Accounting

Authors: Michael A Crain, William S Hopwood,

1st Edition

1941651100, 978-1941651100

More Books

Students also viewed these Accounting questions

Question

How many moles of water are there in 1.000 L? How many molecules?

Answered: 1 week ago

Question

Annoyance about a statement that has been made by somebody

Answered: 1 week ago

Question

Self-confidence

Answered: 1 week ago