Answer:
It will take 11 years and 124 days.
Explanation:
Giving the following information:
Isaac only has $1,090 today but needs $1,979 to buy a new computer. Interest rate= 5.4 percent compounded annually
To calculate the number of years, we need to use an alternative formula of the future value formula.:
FV= PV*(1+i)^n
Isolating n:
n=[ln(FV/PV)]/ln(1+r)
n= [ln(1,979/1,090)] / ln(1.054)
n= 11.34 years
To be more accurate:
0.34*365= 124
It will take 11 years and 124 days.
