Question

Suppose you deposit $1,091.00 into an account 6.00 years from today that earns 12.00%. It will be worth $1,728.00 _____ years from today.

Answer 1

It will take 10.058 years from today.

Step-by-step explanation:

Giving the following information:

Present value= $1,091

Future value= $1,728

Interest rate= 12%

First, we need to calculate the number of years it will take to transform the PV into the FV:

n= ln(FV/PV) / ln(1+i)

n= ln(1,728/1,091) / ln(1.12)

n= 4.058 years

It will take 10.058 years from today.