You expect to receive $33,000 at graduation in two years. You plan on investing it at 9.75 percent until you have $168,000.?
i keep finding 17.49 years but apparently that is incorrect
- Wayne DeguManLv 71 month ago
When you say 9.75%, is this an annual rate compounded annually with no withdrawals??
Assuming so, we have:
168000 = 33000 x 1.0975ᵗ
i.e. 1.0975ᵗ = 168000/33000 => 56/11
so, tlog(1.0975) = log(56/11)
=> t = log(56/11)/log(1.0975)
Hence, t = 17.49 years....I agree
- Keith ALv 61 month ago
I have a few problems with this question.
1) Is there a question? ("How long will it be?")
2) The rate quoted is presumably p.a.; but compounded at what interval?
Annually gives 17.49 years (?plus 2 years).
Monthly gives 16.76 years.
Weekly gives 16.71 years.
Do these figures help?
- 1 month ago
I also get 17.49, perhaps its incorrect because you have to add the 2 years that you have to wait to get the money, so the correct answer would be 19.49, I hope thats correct.Source(s): Excel
- KiethLv 71 month ago
I use it to buy gold, and in 17 years it's worth over $300,000.