If an ounce of gold, valued at $670, increases at a rate of 7.2 percent per year, how long will it take to be valued at $1,000? (Do not round intermediate calculations.

/in /by

If an ounce of gold, valued at $670, increases at a rate of 7.2 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))

 

ANSWER

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now

We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.

1000=670*(1.072)^n

(1000/670)=(1.072)^n

Taking log on both sides;

log(1000/670)=n*log 1.072

n=log(1000/670)/log 1.072

which is equal to

=5.76 years(Approx)