Answer:
n= 346.37 months
Step-by-step explanation:
Giving the following information:
Initial investment (PV)= $1,200
Number of periods (n)= ?
Interest rate (i)= 0.08 / 12= 0.00667
Future Value (FV)= $12,000
To calculate the number of months required to reach the objective, we need to use the following formula:
n= ln(FV/PV) / ln(1+i)
n= ln(12,000 / 1,200) / ln(1.00667)
n= 346.37 months
In years:
346.37/12= 28.86 years
