Question

If you deposit ₱10,000 into an account that earns 5% annual interest compounded semiannually, how long will it take until there is ₱12,000 in the bank account

Answer 1

Answer:

t = 3.69 ≈ 3. 7 years

Step-by-step explanation:

Given :

P = 10,000

r = 5%= 0.05

A = 12,000

n = 2 ( because it is compounded semi - annually )

 

  $A = P (1 + \frac{r}{n})^{nt}$

$12000 = 10000(1 + \frac{0.05}{2})^{2 t}\\\\1.2 = ( 1 + \frac{0.05}{2})^{2t}\\\\1.2 = (1.025)^{2t}\\\\log \ 1.2 = 2t \ log \ 1.025\\\\2t = \frac{log 1.2 }{log 1.025} \\\\2t = \frac{0.1823}{0.0247}\\\\2t = 7.3805\\\\t = 3.69$