Question

The number of years that a stock of $40 increases to $50 at a rate of 8% per year can be written by the logarithmic expression:
log1.08(50 over 40)
a. use your calculator to determine how many years it will take for the stock to reach $50.

Answer 1

50 = 40(1.08)^n
50/40 = 1.08^n
n log 1.08 = log(5/4)
n = log(5/4) / log 1.08
= 2.899 or appr 2.9 years

check:
40(1.08)^2.9 = 50.002

Your expression is incorrect