By a condition of a will, the sum of Php 2.5M is left to a son to be held in a trust fund by his guardian until it amounts to Php 4.5M. When will th son receive the money if the fund is invested at 12% compounded quarterly.

Question

By a condition of a will, the sum of Php 2.5M is left to a son to be held in a trust fund by his guardian until it amounts to Php 4.5M. When will th son receive  the money if the fund is invested at 12% compounded quarterly.

oobleck · Answer

2.5(1 + .12/4)^(4x) = 4.5 1.03^(4x) = 1.8 4x ln1.03 = ln1.8 x = ln1.8/(4ln1.03) = 4.97 years

Anonymous · Answer

5 YEARS