Question

You expect to receive $10,000 at graduation in two years. You plan on investing it at 9 percent until you have $60,000. How long will you wait from now

Answer 1

22.79 years

Step-by-step explanation:

The computation of the number of years is shown below

Future value = Present value × ( 1 + rate)^number of years

$60,000 = $10,000 × (1.09)^n

($60,000 ÷ $10,000) = (1.09)^n

6 = (1.09)^n

Now take the log on both sides

log 6 = n × log 1.09

n = log 6 ÷ log 1.09

= 20.79 years

So, the time is

= 20.79 years + 2 years

= 22.79 years