Question

Jamal is waiting to be a millionaire. He wants to know how long he must wait if a. he invests ​$25,513.03 at 22​% ​today? b.  he invests ​$49,279.29 at 14​% ​today? c. he invests ​$178,456.81 at 8​% ​today? d. he invests ​$333,940.92 at 6​% ​today?

Answer 1

A	B	C	D	E	F	G	H	I	J	K	L	M
2
3		Future value (FV) of amount invested today (P) at interest rate of r after n periods is given by following equation:
4
5		FV = P*(1+r)n
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7		Using the above equation the number of Years (n) can be found as follows:
8
9		n=ln(FV/P)/ln(1+r)
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11		Using the above formula and the given data, Number of Years can be found as below:
12			FV	P	r	n
13		a)	$1,000,000	$25,513.03	22%	18.45	=LN(D13/E13)/LN(1+F13)
14		b)	$1,000,000	$49,279.29	14%	22.97	=LN(D14/E14)/LN(1+F14)
15		c)	$1,000,000	$178,456.81	8%	22.39	=LN(D15/E15)/LN(1+F15)
16		d)	$1,000,000	$333,940.92	6%	18.82	=LN(D16/E16)/LN(1+F16)
17