Question

If you deposit Tsh 4000 into an account paying 9% annual interest compound monthly ,low long until there is Tsh 10000 in the account?

Answer 1

It will take 10.63 years.

Explanation:

Giving the following information:

Present value (PV)= $4,000

Future Value (FV)= $10,000

Interest rate (i)= 9% annual compounded

To calculate the time required to reach $10,000, we need to use the following formula:

n= ln(FV/PV) / ln(1+i)

n= number of years

n= ln(10,000 / 4,000) / ln(1.09)

n= 10.63

It will take 10.63 years.