Randy invested $13,990 in a home brewing company. Today, that company is valued at $32,065. How long has Randy owned the company if the price been increasing at 5 percent per year?

Expert Solution

Randy Invested $ 13990 in Home Brewing Company today

Company Value is $ 32065

Price Increased 5% year.

Present Value Formula

PV = Present value, also known as present discounted value, is the value on a given date of a payment. r = the periodic rate of return, interest or inflation rate, also known as the discounting rate.

Conclusion:

Randy can own the asset after 17 Years from Now.

jeff jeffy answered 2 years ago

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