Question

Jack asked Jill to marry​ him, and she has accepted under one​ condition: Jack must buy her a new ​$330 comma 000 ​Rolls-Royce Phantom. Jack currently has ​$45 comma 530 that he may invest. He has found a mutual fund with an expected annual return of 4.5​% in which he will place the money. How long will it take Jack to win​ Jill's hand in​ marriage? Ignore taxes.

Answer 1

Answer:

time = 45 year

Explanation:

given data

Future Value (FV)  = $

Present Value (PV) = $45530

annual return = 4.5​%

solution

we will get here time period by the given formula that is

Future value  = present value ×  $(1 + r)^t$   ................1

here r is rate put here value and we get

330000 = 45530  ×  $(1 + 0.045)^t$

$(1 + 0.045)^t$ = $\frac{330000}{45530}$    

$(1 + 0.045)^t$ = 7.2479

take ln both side

t ln(1.045) = ln (7.2479)

solve it we get

t = 45 year