Question

Suppose you deposit $1,071.00 into an account today that earns 11.00%. It will take ___ years for the account to be worth $2,911.00.

Answer 1

n= 9.58 years

Step-by-step explanation:

Giving the following information:

Present value= $1,071

Future value= $2,911

Interest rate= 11%

To calculate the number of years required to reach $2,091, we need to use the following formula:

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

n= ln(2,911/1,071) / ln(1.11)

n= 9.58 years