Xu owns two investments, A and B, that have a combined total value of $40,000. Investment A is expected to pay $28,000 in 3 years from today and has an expected return of 7.1 percent per year. Investment B is expected to pay $36,000 in T years from today and has an expected return of 5.5 percent per year. What is T, the number of years from today that investment B is expected to pay $36,000?

The number of years is

Explanation:

From the question we are told that

       The total value of the investment A and B is  $40, 000

       The future value of A is $28,000

       The time period is  t = 3

       The expected return of A is   7.1 % =  0.071

       The future value of  B is  $36,000

        The time period for  B  is T

       The expected return of B is 5.5 % = 0.055

The present value of investment A is mathematically represented as

substituting values

       $ 22792.38

The present value of B is mathematically evaluated as

  substituting values

     B  =  40, 000 - 22792.38

      B  =  $17,208

The future value of B is

 substituting values

take log of both sides

=>  

answer; no individual buyer or seller has any significant impact on the market price;

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