Question

(Solving for n ) Jack asked Jill to marry him, and she has accepted under one condition: Jack must buy her a new $320,000 Rolls-Royce Phantom. Jack currently has $44,300 that he may invest. He has found a mutual fund with an expected annual return of 5.2% in which he will place the money. How long will it take Jack to win Jill's hand in marriage? Ignore taxes. The number of years it will take for Jack to win Jill's hand in marriage is

Answer 1

To isolate the number of years, we need to take the logarithm from both sides of the equation. We can use the natural logarithm (ln):

ln(7,229) = ln[(1 + 0,052) number of years]

Let’s use the properties of the logarithms to simplify the equation:

ln(7,229) = number of years * ln(1 + 0,052)

Now we can divide the two sides of the equation by ln(1 + 0.052) to find the number of years:

number of years = ln(7,229) / ln(1 + 0,052)

Let’s use a calculator to evaluate this expression:

number of years 12.65

So it will take Jack about 12.65 years to save enough money to buy the new Rolls-Royce Phantom and win Jill’s hand in the wedding.

Explanation: