Use the future value formula to find the indicated value. FV=11,000 ; i=0.02 ; PMT = $200 ; n=? n (round up to the nearest integer as needed)

Hi there

The formula of the future value of annuity ordinary is

Fv=pmt [ (1+r) ^ (n) - 1) : r]

Solve the formula for n

Fv/pmt = (1+r) ^ (n) - 1) : r

cross multiplication

(Fv/pmt) * r = (1+r) ^ (n) - 1

(Fv/pmt) * r+1 = (1+r) ^ (n)

take the log for both sides

Log ((Fv/pmt) * r+1) = n*log (1+r)

Divide each side by log (1+r)

N=[Log ((Fv/pmt) * r+1) ]:log (1+r)

Now solve to find n

N=log ((11,000:200) * 0.02+1)

:log (1+0.02)

=37.47 years round your answer to get 37 years

Good luck!