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jarptica [38.1K]
3 years ago
6

A $22,000 loan was taken out. If $24,805 is due at the end of the loan after being compounded daily at 2.5%, how many

Mathematics
1 answer:
Alex777 [14]3 years ago
3 0

9514 1404 393

Answer:

  4.8 years

Step-by-step explanation:

Solving the compound interest formula for the number of years gives ...

  t = log(A/P)/(n·log(1 +r/n))

where principal P invested at rate r compounded n times per year produces value A after t years.

  t = log(24805/22000)/(365·log(1 +0.025/365)) ≈ 4.800

The loan was for 4.8 years.

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