Some kinds of time value problems don't involve determining a dollar amount. Instead, you might want to know, for example, how many years it will take to obtain a specific amount of savings or investment balance. Like this:

Problem: You can earn an annual percentage rate $($APR$)$ of $5\mathrm{.}5\%$ on any invested funds. You have $$50,000$ to invest right now, and you'd like that to grow $($earn interest, or a return$)$ until you have a balance of $$150,000.$ If your return is compounded annually, how many year will this take?

As the text indicates, you will want to understand the info you have available:

Rate $=5\mathrm{.}5\%$

PV $=$ $$50,000$

FV $=$ $$150,000$

Nper $($number of periods$)=$ This is what you want to know.

Using a spreadsheet application, you'll enter the function for number of periods. It will look something like this:

$=$NPER$($RATE$,$ PMT$,$ PV$,$ FV$)$

Recall that one of the dollar values should be negative. Make it the present value of $$50,000.$ That's money you will invest, or anyway send away from you. So its is a cash outflow from your, our the investor's, perspective.

So$...$ How many years to triple your initial investment if you can earn $5\mathrm{.}5\%$ a year?

Group of answer choices

about $20\mathrm{.}5$ years

about $2\mathrm{.}5$ years

about $2\mathrm{.}2$ years

about $17$ years