4. You expect to receive $20,000 at graduation in 2 years. You plan on investing it at 12% compounded monthly until you have $190,000. How long will you wait from now?

Answer 1

Principle = $20,000

Amount (P+I) = $190,000

Rate = 12% Compounded monthly

Using the formula t = ln(A/P) / n[ln(1 + r/n)],

the time you'd have to keep the money invested would be 18.854 years (about 18 years and 10 months)