If $100 is invested at compound interest of 8% per annum, determine: (a)The value after 10 years (b)The time correct to the nearest year, it takes to reach more than $300.
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Originally Posted by gracy If $100 is invested at compound interest of 8% per annum, determine: (a)The value after 10 years (b)The time correct to the nearest year, it takes to reach more than $300. Use the formula: AV=PV(1+i)^n a) 100(1+0.08)^10 = 215.89 (2 decimal places) b) 300=100(1.08)^n divide both sides by 100, 3=(1.08)^n Take log both sides, log 3 = n log(1.08) n = (log3)/(log (1.08) n= 14.27 n= 15 (nearest year)
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