Answer:
10.55 years
Step-by-step explanation:
In order to calculate the number of years, you have to isolate N from the formula:
FV=PV*(1+I)^N
FV= Future value
PV= Present value
i= Interest rate
N= number of periods
FV/PV=(1+i)^N
ln(FV/PV)=Nln(1+i)
N=ln(FV/PV)/ln(1+i)
Now you have to replace the formula to find the answer:
FV= 1486.73
PV= 1077
i= 3.1%
N= ln(1486.73/1077)/ln(1+0.031)
N= ln(1.38)/ln(1.031)
N= 10.55
The answer is that it will take 10.55 years for the balance to reach $1486.73.
