Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If the initial investment/principal/present-value (PV) is $ 13,200.00 , the compounded future-value (FV) amount is $22,680.06 , and finally the annually compounded interest rate is

If the initial investment/principal/present-value(PV)is$13,200.00, the compounded future-value(FV)amount is$22,680.06,and finally theannually compounded interest rate is7%; find the value for number for years(t)(rounded to the nearestwhole number, in this example) that it would take the initial principal investment/present-value(PV)to accumulate to the compounded dollar amount/future value(FV).

(*Hint: to solve fort[maturity/number of years], plug in each of the aforementioned values given above in the problem, including: the present and future values, the annual interest rate(r), and also the number of compounding periods(n). Once everything given is plugged in, you will need to divide both sides of the equality/equation by the present value and then algebraically take thenatural logarithm[ln]of, again, both sides of the equality/equation. Finally, in order to solve fort,once again divide both sides.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

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

Step: 2

blur-text-image

Step: 3

blur-text-image

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

Horngrens Financial and Managerial Accounting

Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura

5th edition

9780133851281, 013385129x, 9780134077321, 133866297, 133851281, 9780133851298, 134077326, 978-0133866292

Students also viewed these Economics questions