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Math Help - money invested

  1. #1
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    money invested

    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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  2. #2
    Junior Member Ruichan's Avatar
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    Quote Originally Posted by gracy View Post
    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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