Answer to Question #199738 in Financial Math for Esaya Chauke

Question

Round your answer to this question to the nearest year. Find the number of years it would take for R748,00

to increase by 72% if it is invested at an interest rate of 7,9% per annum, compounded semi-annually.

Answer 1

$1.72\cdot748=748(1+0.079/2)^{2n}$

$1.72=(1+0.079/2)^{2n}$

$n=ln1.72/(2ln(1+0.079/2))=7\ years$