Solve for the unknown number of years in each of the following (Do not round intermediate calculations and round your answers to 2 decimal places, e. g., 32.16.) : Present Value Years Interest Rate Future Value$ 490 x 10 % $ 1,252740 x 11 1,67017,700 x 16 216,05020,800 x 13 262,330

Present Value Years Interest Rate Future Value

1. $490 9.84 10% $1,252

2. $740 7.80 11% $1,670

3. $17,700 16.86 16% $216,050

4. $20,800 20.74 13% $262,330

Explanation:

Present Value Years Interest Rate Future Value

1. $490 x 10% $1,252

2. $740 x 11% $1,670

3. $17,700 x 16% $ 216,050

4. $20,800 x 13% $ 262,330

Solution

1.

FV = PV x (1 + r) ^n

1252 = 490 x (1 + 0.1) ^n

1252 / 490 = 1.1^n

2.5551 = 1.1^n

log 2.5551 = n log 1.1

n = log 2.5551 / log 1.1

n = 9.84

2.

FV = PV x (1 + r) ^n

1670 = 740 x (1 + 0.11) ^n

1670 / 740 = 1.11^n

2.2568 = 1.11^n

log 2.2568 = n log 1.11

n = log 2.2568 / log 1.11

n = 7.8

3.

FV = PV x (1 + r) ^n

216,050 = 17,700 x (1 + 0.16) ^n

216,050 / 17,700 = 1.16^n

12.2062 = 1.16^n

log 12.2062 = n log 1.16

n = log 12.2062 / log 1.16

n = 16.86

4.

FV = PV x (1 + r) ^n

262,330 = 20,800 x (1 + 0.13) ^n

262,330 / 20,800 = 1.13^n

12.612 = 1.13^n

log 12.612 = n log 1.13

n = log 12.612 / log 1.13

n = 20.74