4 June, 00:31

# 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.) : Present Value Years Interest Rate Future Value\$ 490 x 10 % \$ 1,252740 x 11 1,67017,700 x 16 216,05020,800 x 13 262,330

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1. 4 June, 02:30
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Present Value Years Interest Rate Future Value

1. \$490 9.84 10% \$1,252

2. \$740 7.80 11% \$1,670

3. \$17,700 16.86 16% \$216,050

4. \$20,800 20.74 13% \$262,330

Explanation:

Present Value Years Interest Rate Future Value

1. \$490 x 10% \$1,252

2. \$740 x 11% \$1,670

3. \$17,700 x 16% \$ 216,050

4. \$20,800 x 13% \$ 262,330

Solution

1.

FV = PV x (1 + r) ^n

1252 = 490 x (1 + 0.1) ^n

1252 / 490 = 1.1^n

2.5551 = 1.1^n

log 2.5551 = n log 1.1

n = log 2.5551 / log 1.1

n = 9.84

2.

FV = PV x (1 + r) ^n

1670 = 740 x (1 + 0.11) ^n

1670 / 740 = 1.11^n

2.2568 = 1.11^n

log 2.2568 = n log 1.11

n = log 2.2568 / log 1.11

n = 7.8

3.

FV = PV x (1 + r) ^n

216,050 = 17,700 x (1 + 0.16) ^n

216,050 / 17,700 = 1.16^n

12.2062 = 1.16^n

log 12.2062 = n log 1.16

n = log 12.2062 / log 1.16

n = 16.86

4.

FV = PV x (1 + r) ^n

262,330 = 20,800 x (1 + 0.13) ^n

262,330 / 20,800 = 1.13^n

12.612 = 1.13^n

log 12.612 = n log 1.13

n = log 12.612 / log 1.13

n = 20.74