Kevin Morales invests $14,963.72 now for a series of $2,200 annual returns beginning one year from now. Kevin will earn a return of 6% on the initial investment. How many annual payments of $2,200 will Kevin receive?

Answer = 9 years

Explanation:

Present value of annuity=Annuity[1 - (1+interest rate) ^-time period]/rate

14,963.72=2200[1 - (1.06) ^-n]0.06

14,963.72=36,666.67[1 - (1.06) ^-n]

1 - (1.06) ^-n = (14,963.72/36,666.67)

(1.06) ^-n=1 - (14,963.72/36,666.67)

(1/1.06) ^n=0.591898545

Taking log on both sides;

n*log (1/1.06) = log 0.591898545

Hence n=log0.591898545/log (1/1.06)

=9 years.