core:0 of 10 pts 14 of 17 (8 complete) HW Score: 25.296, 42.84 of 170 pts 5-18 (
ID: 2819147 • Letter: C
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core:0 of 10 pts 14 of 17 (8 complete) HW Score: 25.296, 42.84 of 170 pts 5-18 (similar to) Question Help (Related to Checkpoint 5.5) (Solving for n) Jack asked Jill to marry him, and she has accepted under one condition. Jack must buy her a new $300,000 Rolls-Royce Phantom. Jack currently has $47,670 that he may invest. He has found a mutual fund with an expected annual refurn of 5 percent in which he will place the money How long will it take Jack to win Jill's hand in marriage? ignore taxes and inflation The number of years t will ake for Jack to win Ji's hand n mamiage is l years (Round to one decimal place ) Enter your answer in the answer box and then click Check Answer ance All parts showing earch EAExplanation / Answer
The money is invested in Mutual Fund for a longer term, hence it will provide a compound interest on the investment.
The formula for compound interest is
FV = PV (1 + r) n
FV= the future value of the investment with the interest
PV = Initial Investment
r = the annual interest rate (decimal)
n= the number of years the money is invested or borrowed for
300,000 = 47,670 (1+0.05)^n
6.293266 = (1.05)^n
We can calculate the value of n either by using log table,
= Log (base 10) 6.293266 divided by Log (base 10) 1.05
= 0.798876 / 0.021189
= 37.70 Years
Hence, it will take 37.7 years for Jack to win Jill's hand for marriage
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