Answer to Question #265627 in Financial Math for sumu

Question

$10000 was compounded annually at 12.5% p.a. and amounted to $52015.80. How many years did it take?

Answer 1

$A=P(1+r)^t$

$52015.80=10000(1+0.125)^t$

$5.201580=[1+0.125]^t$

$5.201580=[1.125]^t$

$log5.201580=tlog(1.125)$

$t=\frac{log5.201580}{log1.125}=14years$