Mathematics: How many years does it take for an annuity of $ 1,000 to grow to $ 20,000, assuming k = 7%? a. 12.94 b. 13.02 c. 14.18 d. 15.67 e. none of the above?

How many years does it take for an annuity of $

Ответ:

Hardydonotmess1

15.03.2022

For an annual deposit of A=$1000 (at the end of the year) at an annual interest rate of i=7% compounded yearly, the future value
$F=\frac{A((1+i)^n-1)}{i}$ where n=number of years
=>
$20000=\frac{1000((1+.07)^n-1)}{.07}$
on simplification
1.4=(1.07)^n-1