I'm a little confused with this question, please help.
1 answer:
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Answer:
See Below
Step-by-step explanation:
The question is asking:
After how many years, 20,000 will become 500,000 at an annual interest of 11.5%?
So, we need compound growth formula shown below to solve this:
F is future value
P is present amount
r is rate of interest
t is the time of year
Given,
F = 500,000
P = 20,000
r = 11.5% = 11.5/100 = 0.115
t is what we want to find
Now, we take natural log of both sides and solve for t:
Its is going to take about 29.57 years, rounding, 30 years