4.7 Waiting Time and Interest Rates for Annuities
So far in this chapter, we have looked exclusively at three of the four variables from the time value of money equation: present value (PV), future value (FV), and payments (PMT). Now let's turn our attention to the time variable (n) in the equation and answer this question: How long will it take to pay off the loan or build my nest egg?
One common application of the equation is to determine the waiting time to reach a specific future value. In Example 4.3, we look at an annuity problem where the variable of concern is time.
MyFinanceLab Video
Example 4.3 So you want to be a millionaire? (finding the number of years)
Problem
Denise has her heart set on being a millionaire. She decides that ...
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