Question

A loan of 43,000 is made of 4% interest, compounded annually. After how many years will the amount due reach $66,000 or more?

Answer 1

about 13 years

Explanation:

Answer 2

10 yrs

Explanation:

A=P(1+r/n)^nt, P=initial investment, r=annual interest rate,n=number of compounding periods per year, A=amount after t years

For given problem:

P=37000

r=5.5%=.055

n=1

A=62000

..

62000=37000(1+.055)^t

62/37=1.055^t

tlog(1.055)=log(62/37)

Using log keys on calculator:

t=log(62/37)/log(1.055)≈10 yrs