Question

Jack asked Jill to marry​ him, and she has accepted under one​ condition: Jack must buy her a new ​$330 comma 000 ​Rolls-Royce Phantom. Jack currently has ​$45 comma 530 that he may invest. He has found a mutual fund with an expected annual return of 4.5​% in which he will place the money. How long will it take Jack to win​ Jill's hand in​ marriage? Ignore taxes.

Answer 1

time = 45 year

Step-by-step explanation:

given data

Future Value (FV) = $

Present Value (PV) = $45530

annual return = 4.5​%

solution

we will get here time period by the given formula that is

Future value = present value ×
`(1 + r)^t` ................1

here r is rate put here value and we get

330000 = 45530 ×
`(1 + 0.045)^t`

`(1 + 0.045)^t` =
`(330000)/(45530)`

`(1 + 0.045)^t` = 7.2479

take ln both side

t ln(1.045) = ln (7.2479)

solve it we get

t = 45 year