How long will it take to have R30 000 for a trip to Europe if I invest R20 000 now at 15% per year,

1 answer:

5 0

The formula is
A=p (1+r/k)^kt
A future value 30000
p present value 20000
R interest rate 0.15
K compounded quarterly 4
T time?
30000=20000 (1+0.15/4)^4t
Solve for t
Divide both sides by 20000
30000/20000=(1+0.15/4)^4t
Take the log of both sides
Log (30000/20000)=4t×log (1+0.15/4)
Divide both sides by log (1+0.15/4)
4t=Log (30000/20000)÷log (1+0.15/4)
Divide both sides by 4
T=(log(30,000÷20,000)÷log(1+0.15÷4))÷4
T=2.7 years round your answer to get 3 years

Hope it helps!

You might be interested in

In 2000, the circulation of a local newspaper was 3,250. In 2001, its circulation was 3,640. In 2002, the circulation was 4,100.

vodka [1.7K]

Percent increase from 2000 to 2001 is 12% and from 2001 to 2002 is 12.6%. Thus period of 2001 to 2002 has higher increase percentage.

Solution:

Given that,

Total circulation of local newspaper in 2000 = 3250

Total circulation of local newspaper in 2001 = 3640

Total circulation of local newspaper in 2002 = 4100

Finding percent of increase in the newspaper’s circulation from 2000 to 2001:

$\text { Percent increase from } 2000 \text { to } 2001=\frac{\text { change in circulation from 2001 - 2000 }}{\text { circulation in } 2000} \times 100$

$\begin{array}{l}{=\frac{3640-3250}{3250} \times 100} \\\\ {=\frac{390}{3250} \times 100=12 \%}\end{array}$

Finding percent of increase in the newspaper’s circulation from 2001 to 2002:

$\begin{array}{l}{\text { Percent increase from } 2001 \text { to } 2002=\frac{\text { change in circulation }}{\text {circulation in } 2001} \times 100} \\\\ {=\frac{4100-3640}{3640} \times 100} \\\\ {=\frac{460}{3640} \times 100=12.6 \%}\end{array}$