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If P Dollars Are Invested at the End of Each n=log[ArP+1]log(1+r)n = \frac { \log \left[ \frac { A r } { P } + 1 \right] } { \log ( 1 + r ) }

Question 44

Multiple Choice

If P dollars are invested at the end of each year in an annuity that earns interest at an annual rate r, the amount in the account will be A dollars after n years, where n=log[ArP+1]log(1+r) n = \frac { \log \left[ \frac { A r } { P } + 1 \right] } { \log ( 1 + r ) }
If $6,000\$ 6,000 is invested each year in an annuity earning 10%10 \% annual interest, when will the account be worth $45,000\$ 45,000 ?


A) 3.0\quad - 3.0 years
B) 2.8\quad 2.8 years
C) 5.9\quad 5.9 years
D) 13.5\quad 13.5 years
E) 7.5\quad 7.5 years

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