Thread: 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.

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)

Thank you SOOOO MUCH =)