Please explain step by step (Engineering Econ) How long does it take to become a millionaire? A $500,000 investment will hit $1 million in 41 years at an annual interest rate of 1.70%. How long will it take to become a millionaire if the annual interest rate increases to 2.34%?You can get to your goal in years when i=2.34%. (Round to the nearest whole number.)B

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ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please explain step by step (Engineering Econ)

How long does it take to become a millionaire? A $500,000 investment will hit $1 million in 41 years at an annual interest rate of 1.70%. How long will it take to become a millionaire if the annual interest rate increases to 2.34%?
You can get to your goal in years when i=2.34%. (Round to the nearest whole number.)
B

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Step 1

The number of periods can be computed based on future value (FV) and present value (PV). The formula on computing for number of periods may i.e. solving for n, originates from formulas of the present value and future value wherein the variable n denotes the number of periods. FV = PV (1 + interest rate)ⁿ

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