document.write( "Question 1189773: A loan of $48,000 is made at 8.75% interest, compounded annually. After how many years will the amount due reach $ 153,000 or more?
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Algebra.Com's Answer #821235 by ikleyn(52781) $\"\"$ $\"About$

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\n" ); document.write( "A loan of $48,000 is made at 8.75% interest, compounded annually.
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document.write( "Use the formula for the annually compounded amount and write this inequality\r\n" );
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document.write( "     >= 153000,\r\n" );
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document.write( "where \"t\" is the time, in years\r\n" );
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document.write( "Divide both sides by 48000\r\n" );
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document.write( "     >=  = 3.1875.\r\n" );
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document.write( "Take logarithm of both sides\r\n" );
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document.write( "    t*log(1.0875) >= log(3.1875) = 0.50345.\r\n" );
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document.write( "Find t\r\n" );
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document.write( "    t >=  = 13.82...\r\n" );
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document.write( "Next, you should round this value of t to the closest greatest integer value,\r\n" );
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document.write( "in order for the last compounding was performed.\r\n" );
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document.write( "So, your answer is 14 years.\r\n" );
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\n" ); document.write( "\n" ); document.write( "To see many other similar (and different) solved problems, look into the lesson\r
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\n" ); document.write( "\n" ); document.write( "After reading this lesson, you will tackle such problems on your own without asking for help from outside.\r
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