Question

You expect to receive $10,000 at graduation in two years. You plan on investing it at 11% until you have $75,000. How long will you wait from now?

Answer 1

about 19.31 years

Explanation:

`10000( {1.11}^(x) ) = 75000`

`{1.11}^(x) = 7.5`

`x ln(1.11) = ln(7.5)`

`x = ( ln(7.5) )/( ln(1.11) ) = 19.31`