Answer:
7 years.
Explanation:
We know,
Future value = Present Value × [tex](1 + i)^{n}[/tex]
Given,
Future Value, FV = $10,000
Present Value, PV = $6,651
Interest rate, i = 6% = 0.06
We have to determine how many years to acquire $10,000 in the future.
Now, $10,000 = $6,651 × [tex](1 + 0.06)^{n}[/tex]
or, $(10,000 ÷ 6,651) = [tex]1.06^{n}[/tex]
or, 1.5035 = [tex]1.06^{n}[/tex]
or, Log 1.5035 = n log 1.06
Using the calculator to find the value of log.
0.1771 = n × 0.0253
or, n = 0.1771 ÷ 0.0253
or, n = 7 years
7 years will be needed to acquire $10,000 in the future.
