Answer to Question #265627 in Financial Math for sumu

Question #265627

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

Expert's answer

"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"

Learn more about our help with Assignments: Math

Comments

No comments. Be the first!

Leave a comment

Related Questions

1. How much is to be invested now at 10% compound interest p.a. if after 5 years the investment is to r
2. Find the accumulate amount of(a) $600 earns simple interest at 5% p.a. over 7 years.(b) $480 compoun
3. Find the present value of $700 due in five years’ time at 6% p.a. compounded monthly
4. Find the present value of $300 due in six years’ time at 8% p.a. compounded annually.
5. X must borrow $2000 for 2 years. He is offered the money at: (A) 5% compounded quarterly (B) % 8 3 5
6. A firm plans to invest an amount of money at the beginning of every year in order to acquire a sum o
7. An insurance fund invests Rs. 500,000 at the beginning of each year for five years at an interest ra