Ask Question
4 June, 21:08

You expect to receive $11,000 at graduation in two years. You plan on investing it at 11 percent until you have $77,000. How long will you wait from now? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e. g., 32.16)) Number of years

+4
Answers (1)
  1. 4 June, 21:28
    0
    20.65 years

    Explanation:

    The number of years for investing $11,000 at rate 11% to have $77,000

    PV: $11,000

    FV: $77,000

    Rate: 11%

    FV = PV * (1+rate) ^tenor

    ⇔ 77000 = 11000 * (1+11%) ^tenor

    ⇔ (1.11) ^tenor = 77000/11000 = 7

    we do the logarithm of number 7 base 1.11 to have tenor:

    Tenor = 18.65 years

    Together with 2 years waiting for graduation, you have to wait 20.65 yerars to have $77,000 from now.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “You expect to receive $11,000 at graduation in two years. You plan on investing it at 11 percent until you have $77,000. How long will you ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers