You expect to receive $5,000 at graduation in two years. You plan on investing i
ID: 2734574 • Letter: Y
Question
You expect to receive $5,000 at graduation in two years. You plan on investing it at 12 percent until you have $95,000. How long will you wait from now? (Do not round your intermediate calculations.)
You expect to receive $5,000 at graduation in two years. You plan on investing it at 12 percent until you have $95,000. How long will you wait from now? (Do not round your intermediate calculations.)
You expect to receive $5,000 at graduation in two years. You plan on investing it at 12 percent until you have $95,000. How long will you wait from now? (Do not round your intermediate calculations.)Explanation / Answer
Assume annualy compounded.
Cum. Amount = Principal*(1+r/100)^n
$95000= $5000*(1.12)^n
95000/5000= (1.12)^n
19= (1.12)^n
No. of periods= 26 year approx