document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=960998>Question 960998</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Here is the problem:\r<BR>\n" );
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document.write( "A certain item costs $4.75. Due to inflation, experts estimate the cost will increase by 2% per year. Approximately how many years until the item costs $7.20?\r<BR>\n" );
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document.write( "Do I use the growth formula to solve???\r<BR>\n" );
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document.write( "Q(t) = C * (1+r/t)^t\r<BR>\n" );
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document.write( "Solve for t to get the answer??? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #587309 by </B><A HREF=/tutors/aboutme.mpl?userid=harpazo><B>harpazo(655)</B></A><img src=\"/images/stars/stars-11.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=harpazo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=harpazo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=587309\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> \r<BR>\n" );
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document.write( "As it is not compounded in a year, the general formula will be FV = PV * (1 + r)^t\r<BR>\n" );
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document.write( "FV will be the future value where PV is the present value. r is the  the rate (per year) and t shows the years.\r<BR>\n" );
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document.write( "7.20 = 4.75 * (1 + 0.02)^t\r<BR>\n" );
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document.write( "(1.02)^t = 7.2/4.75\r<BR>\n" );
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document.write( "ln (1.02)^t = ln (7.2/4.75)\r<BR>\n" );
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document.write( "t = ln (7.2/4.75) / ln (1.02)<BR>\n" );
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document.write( "t &#8776;  21.004\r<BR>\n" );
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document.write( "=> after 21 years \r<BR>\n" );
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document.write( "Check this page please <BR>\n" );
document.write( "http://www.calculatorsoup.com/calculators/financial/future-value-investment-calculator.php\r<BR>\n" );
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document.write( "If we enter the values P = 4.75, R = 2 and t = 21, the result will be 21 years. (m is 1 as the rate isn't compounded) </SPAN>\n" );
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