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.

      

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.

  

Answers


Faridah
a=100, r=(100+8=108 108÷100= 1.08) r=1.08

ar^10=100×(1.08)^10 = £215.89

ar^n=300

100×(1.08)^n=300
(100×(1.08)^n)÷100=300÷100

1.08^n= 3

nlog1.08=log3
(n log 1.08)÷log1.08=n

Log3 ÷log 1.08= 14.27

n =15years
Frezre answered the question on October 21, 2018 at 15:02


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