+0  
 
0
35
2
avatar

At a certain fixed rate of compound interest per annum, how long it takes to generate an investment of 1 to n? Assume that only one amount is invested at the beginning of the time and no withdrawal is allowed. 

Guest Nov 9, 2018
 #1
avatar
0

n =1 * ( 1 + r )^t *(1 + r), solve for t, where n=FV, $1 =PV, r=Rate per annum, t=Number of years.

 

t =log(n / (r + 1)) / log(r + 1) 

Guest Nov 9, 2018
 #2
avatar
0

A slight adjustment in the formula given above, since whether at the beginning or at the end of a period, it makes NO difference in the final outcome for one lump sum payment. The "beginning" or the "end" of a period makes a difference ONLY with regard to "Periodic Payments". So, the above formula should be the stated as follows:

 

n = $1 x [1 + r]^t. Now, you can solve for "t"

t =log(n/$1) / log(1+r)

Note: You may try this for yourself by using this online financial calculator:

https://arachnoid.com/finance/

Guest Nov 9, 2018
edited by Guest  Nov 9, 2018

18 Online Users

avatar

New Privacy Policy

We use cookies to personalise content and advertisements and to analyse access to our website. Furthermore, our partners for online advertising receive information about your use of our website.
For more information: our cookie policy and privacy policy.