Use the future value formula to find the indicated value FV

Use the future value formula to find the indicated value. FV = 9,000; i = 0.03; PMT = $600; n = ? n =

Solution

we know that FV = PMT (1+i) ^n

put the above given values:

9000 = $600 ( 1 + 0.03 )^n

=> 15 = (1.03)^n

take ln both sides

=> ln (15) =ln (1.03)^n

=> ln (15) = n ln(1.03)

=> 2.708 = n * 0.0295588

=> n = 2.708/0.0295588

=> n = 91.61