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Math Help - Future Value

  1. #1
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    Future Value

    Use this formula to find the indicated value:

    FV=PMT((1+i)^n)-1)/i

    FV=4000
    PMT=200
    i=.02
    n=?

    Find n.
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  2. #2
    MHF Contributor

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    First, FVi= PMT((1+i)^n- 1)= PMT(1+i)^n- PMT
    FVi+ PMT= PMT(1+i)^n
    (1+i)^n= FVi/PMt+ PMT/PMT= (FVi/PMT)+ 1

    Now, since n is an exponent, you will need to us a logarithm:
    n log(1+i)= log((FVi/PMT)+ 1)

    n= (LOG((FVi/PMT)+ 1)/(1+ i)
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  3. #3
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    Thank you SOOOO MUCH =)
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