Question

A loan of 28,000 is made at 4% interest, compounded annually. After how many years will the amount due reach 48000 or more?

Answer 1

The time is 13.7 years.

Explanation:

principal, P = 28000

Rate of interest , R = 4 % annually

Amount, A = 48000

Let the time is t.

Use the formula of the compound interest.

`A = P* \left ( 1+(r)/(100) \right )^t\\\\48000 = 28000* \left ( 1+(4)/(100) \right )^t\\\\1.71 = 1.04^t\\\\log 1.71 = t log 1.04\\\\t =(0.233)/(0.017)\\\\t = 13.7 years`