Question

How many years would it take for

£109.27 to be accrued after
£100 is invested with 3%
pa compound interest.
Years:

Answer 1

3 years approx

Explanation:

Given data

Principal=£100

Amount= £109.27

Rate= 3%

The expression for the compound interest is

A=P(1+r)^t

Make t subject of formula we have

t= ln(A/P) / r

t= ln(109.27/100)/ 3

t= ln(1.0927)/0.03

t= 0.088/0.03

t= 2.93

Hence the time is 3 years approx