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

4 Answers

Relevance
  • 1 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

    :)>  

  • 1 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. 

    Attachment image
    Source(s): Excel
  • Kieth
    Lv 7
    1 month ago

    I use it to buy gold, and in 17 years it's worth over $300,000.

Still have questions? Get your answers by asking now.