Answer:
It will take 5.33 years for the price of gas to reach $4.8.-
Step-by-step explanation:
Giving the following information:
Present value= $3.7
Future value= $4.8
Growth rate= 5%
To calculate the time required to reach $4.8, we need to use the following formula:
n= ln(FV/PV) / ln(1+g)
n= ln(4.8 / 3.7) / ln(1.05)
n= 5.33
It will take 5.33 years for the price of gas to reach $4.8.-
