Question

You just won $30,000 and deposited your winnings into an account that pays 3.9 percent interest, compounded annually. How long will you have to wait until your winnings are worth $75,000?21.24 years25.00 years22.29 years22.67 years23.95 years

Answer 1

23.95 years

Step-by-step explanation:

In this question, we use the NPER formula which is shown in the spreadsheet.

The NPER represents the time period.

Given that,

Present value = $30,000

Future value = $75,000

Rate of interest = 3.9%

The formula is shown below:

= NPER(Rate;PMT;-PV;FV;type)

The present value come in negative

So, after solving this, the answer would be 23.95 years