Question

1. John Jamison wants to accumulate $75,563 for a down payment on a small business. He will invest $35,000 today in a bank account paying 8% interest compounded annually. Approximately how long will it take John to reach his goal

Answer 1

10 years.

Step-by-step explanation:

The time period, N for John to reach his goal can be determined using a financial calculator as follows :

FV = $75,563

PV = - $35,000

PMT = $ 0

R = 8.00 %

P/YR = 1

N = ?

Using a financial calculator, the time period, N for John to reach his goal is 10 years.