Question

Years Present Value 900 2,591 34,105 33,800 Interest Rate 12 % 10 Future Value $ 1,755 4,350 393,620 217,868 22

Answer 1

	FV =	Future Value
	PV =	Present Value
	r =	rate of interest
	n=	no of period
a)	FV/ PV =	(1 + r )^n
	1755 / 900 =	(1 + 12%)^n
	1.95 =	1.12^n
	n =	5.89 years
b)	FV/ PV =	(1 + r )^n
	4350 / 2591 =	(1 + 10%)^n
	1.6788884600=	1.10^n
	n =	5.44 years
c)	FV/ PV =	(1 + r )^n
	393620 / 34105 =	(1 + 15%)^n
	11.541416214 =	1.15^n
	n =	17.50 years
d)	FV/ PV =	(1 + r )^n
	217868 / 33800 =	(1 + 22%)^n
	6.4457988165 =	1.22^n
	n =	9.37 years