Answer:
The capital will first exceed RM 10 000 after 12 complete years.
Step-by-step explanation:
This is a compound interest problem.
The compound interest formula is given by:
Where A is the amount of money, P is the principal(the initial sum of money), r is the interest rate(as a decimal value), n is the number of times that interest is compounded per unit t and t is the time the money is invested or borrowed for.
In this exercise, we have:
So, for our problem, we have:
We first want to find t, when , given that
and
.
Now we apply log to both sides. Important to remember the following proprierty:
11.9 years is 11 years and some 330 days. The next complete year will be the 12th year.
The capital will first exceed RM 10 000 after 12 complete years.