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

question 39

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 $$n = \frac { \log \left[ \frac { A r } { P } + 1 \right] } { \log ( 1 + r ) }$$
If $\$ 2,600$ is invested each year in an annuity earning $12 \%$ annual interest, when will the account be worth $\$ 30,000$ ?

• A) \(\quad 11.5\) years
• B) \(\quad 2.8\) years
• C) \(\quad 2.9\) years
• D) \(\quad 7.7\) years
• E) \(\quad 17.7\) years

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