Question 528589: Can someone help me with this.
a loan of $26,000 is made at 6% interest, compounded annually. after how many years will the amount due reach $46,000 or more? write the answer as a whole number.
Thank you.
Answer by lwsshak3(11628)   (Show Source):
You can put this solution on YOUR website! Can someone help me with this.
a loan of $26,000 is made at 6% interest, compounded annually. after how many years will the amount due reach $46,000 or more? write the answer as a whole number.
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Compound Interest Formula: A=P(1+i)^n, P=initial investment, i=interest rate per period, A=amount after n periods.
For given problem:
46000=26000(1+.06)^n
46000=26000(1.06)^n
46000/26000=(1.06)^n
take log of both sides
log(46/26)=nlog(1.06)
n=log(46/26)/log(1.06)
n=10
ans:
The amount due will reach $46,000 or more after 10 years
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