The amount would take 24 years (to the nearest years).
Step-by-step explanation:
Given details=
Principal (initial amount)= $ 2500
Amount= $ 13,100
Rate of interest (compounded annually)= 7.25%
Time required
We know that for compound interest A= P(1+R/100)ⁿ
Where A= amount
P= principal
R=rate
n= time period
Substituting the value of A, P, R in the equation above, we get
13,100= 2500(1+7.25/100)ⁿ
13,100/2500= (1+7.25/100)ⁿ
Solving the equation would give us the value of "n" as 23.66 years
Since the answer is required in the nearest year, the answer is rounded off to 24 years.
The amount would take 24 years to reach the amount of $ 13,100
