Answer:
The correct answer is
K = 29.0123 months
Step-by-step explanation:
The given variables are interest at 12 % monthly compounded
to find the number of months
Compound interest = and
A = Future value.
P= Principal, initial value amount,
r= Interest rate
n= number of time units,
t = time
and where
P = principal,
i = interest,
F = Future sum payment
n = number of payment time units
The two options have the same eventual value
Therefore we have
Taking natural logarithm of both sides we have
K= -(㏑(10/6)+)/㏑(1.01) = 29.0123 months
Alternatively we have