You expect to receive $29,000 at graduation in two years. You plan on investing it at 10 percent until you have $164,000.how long it takes?
- Anonymous5 months ago
Yes I have spoken to her and I met her. It is love.
- STEPHENLv 75 months ago
Good luck in finding somewhere that pays 10%. This must be a really old question.
- Aster RhoidsLv 75 months ago
Why would I receive $29,000 when that could be used to pay off the tuition
- TomVLv 75 months ago
A(t) = A₀(1 + r/n)^(nt)
A(t) = compounded amount after t years = 164000
A₀ = original amount = 29000
r = annualized rate of interest = 0.10
n = number of compounding periods per year
t = number of years.
164000 = 29000(1+0.10/n)^(nt)
164/29 = (1+0.10/n)^(nt)
log(164/29) = (nt)log(1+0.10/n)
t = log(164/29)/[n log(1+0.10/n)
Annual Compounding: n = 1
t = log(164/29)/log(1.1) ≈ 18.2 → 19 years
Monthly Compounding: n = 12
t = log(164/29)/[12log(1+1/120)] ≈ 17.4 → 18 years
Daily Compounding : n = 360 [Financial calculations commonly use 30 days per month, 360 days per year]
t = log(164/29)/[360log(1+1/3600)] ≈ 17.3 → 18 years
Continuous Compounding: A(t) = A₀e^(rt)
t = ln(164/29)/0.1 ≈ 17.3 → 18 years
Simple Interest: A(t) = A₀(1+rt)
t = [(164/29) - 1]/0.10 = 46.6 → 47 years
Depending on the tax implications of the type of investment, you may be required to pay income taxes on the annual increase in the value of the investment which may appreciably extend the time before the net worth of the investment reaches $164000.
Depending on the type of return, it will take somewhere between 18 and 47 years if you can reliably achieve a rate of return of 10% over the entire term.
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- historyLv 75 months ago
Please tell me where I can invest in a guarantee of 10% return?
- 5 months ago
164000 = 29000 * 1.1^x
164/29 = 1.1^x
ln(164/29) = x * ln(1.1)
ln(164/29) / ln(1.1) = x
x = 18.178232392329471658122857026259....
18.18 years, roughly, just round up to 19 years.