The question "How long will I have to wait to reach a certain future value?" is best answered by which form of the TVM equation? A)n = $\frac { FV } { ( 1 + r ) ^ { n } }$ B)n = PV × (1 + r)ⁿ C)n = (FV/PV)^1/n - 1 D)n = $\frac { \ln ( \mathrm { FV } / \mathrm { PV } ) } { \ln ( 1 + \mathrm { r } ) }$

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Quizplus · Accepted Answer

The correct formula for calculating the number of periods (n) required to reach a certain future value (FV) given a present value (PV) and a constant rate of return (r) is D) $n = \frac { \ln ( \mathrm { FV } / \mathrm { PV } ) } { \ln ( 1 + \mathrm { r } ) }$. This formula rearranges the basic future value formula to solve for the time period, using logarithms to isolate n.

The Question "How Long Will I Have to Wait to Reach