If an ounce of gold valued at 710 increases at a rate of 76

If an ounce of gold, valued at $710, increases at a rate of 7.6 percent per year, how long will it take to be valued at $1,000? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

Number of years

Solution

PV = 710 , I = 7.6% and FV = 1000

FV = PV * (1+I)^N

1000 = 710 * (1+7.6%)^N

Solving for N, we get N = 4.67 years

= 5 years