Question
I have to solve for the unknown number of years in thefollowing... pv=560, r=9%, and fv= 1,284 I think the equation is fv=pv(1+r)^t so Ido 1284=560(1+.09)^t 2.29=(1.09)^t t=? I don't know how to get the value for t also then I need to find out how long it takes to double mymoney and then quadruple it...how do I do this? I have to solve for the unknown number of years in thefollowing... pv=560, r=9%, and fv= 1,284 I think the equation is fv=pv(1+r)^t so Ido 1284=560(1+.09)^t 2.29=(1.09)^t t=? I don't know how to get the value for t also then I need to find out how long it takes to double mymoney and then quadruple it...how do I do this?
Explanation / Answer
Present Value (PV) $560 Interest rate 9% Future Value (FV) $1,284 Calculating Number ofPeriods: (Using MS-Excel "NPER"Function): Interet rate (Rate) 9% Present Value (PV) -$560 Future Value (FV) $1,284 Number of years (NPER) 9.63 Number of years = 9.63 years Present Value (PV) $560 Interest rate 9% Future Value (FV) $1,284 Calculating Number ofPeriods: (Using MS-Excel "NPER"Function): Interet rate (Rate) 9% Present Value (PV) -$560 Future Value (FV) $1,284 Number of years (NPER) 9.63 Number of years = 9.63 years