Question

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

Answer 1

Answer: 47.8 years

Step-by-step explanation:

Jack is trying to make up to $330,000 from $50,680 at a rate of 4% in the future so the relevant formula is a future value formula.

330,000 = 50,680 * ( 1 + 4%) ^ number of years

1.04 ^ number of years = 330,000 / 50,680

1.04 ^ N = 6.5114

Use the Natural logarithm, In, to solve for N

N * In (1.04) = In (6.5114)

N * 0.0392 = 1.87356

N = 1.87356/ 0.0392

= 47.8 years