Question
A loan of 25,000 is made at 3.75% interest, compounded annually. After how many years will the amount due reach 42,000 or more?
Answers
Reiny
25000(1.0375)^n = 42000
1.0375^n = 1.68
take logs of both sides and use rules of logs
n log 1.0375 = log 1.68
n = appr 14.09 years
1.0375^n = 1.68
take logs of both sides and use rules of logs
n log 1.0375 = log 1.68
n = appr 14.09 years