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Christina has been saving $11,000 a year ever since she started to work. She has earned an average return of 9.81 percent and now has a total of $237,629 in her savings account. How many years has it been since Christina first started saving money? O 913 years O 12.16 years O 11.31 years 14.12 years
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Answer #1

FVA = P x [{(1 + r)n - 1}/ r]

$237,629 = $11,000 x [(1.0981n - 1) / 0.0981]

21.6026 x 0.0981 = (1.0981n - 1)

2.1192 + 1 = 1.0981n

3.1192 = 1.0981n

ln(3.1192) = n[ln(1.0981)]

1.1376 = n[0.0936]

n = 12.16 years

Hence, Option "B" is correct.

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