Maxxie purchased a tract of land for $29,500. Today, the same land is worth $45,100. How many years have passed if the price of the land has increased at an annual rate of 5.7 percent? a. 6.56 years
b. 5.74 years
c. 6.81 years
d. 7.66 years
e. 6.89 years

n= 7.66 years

Explanation:

Giving the following information:

Present value (PV)= $29,500

Future value (FV)= $45,100

Interest rate= 5.7%

To calculate the number of years, we need to use the following formula:

n= ln(FV/PV) / ln(1+i)  

n= ln(45,100/29,500) / ln(1.057)

n= 7.66 years