Question

In how much time will the interest on a sum of money will be half the money at 5% pa

Answer 1

Answer:

13 years 6 months

Step-by-step explanation:

make use of the formula of compound interest :

A = P(1-R/100)^n

since the money is decreasing a negative sign is used...

lets use an example: (we are looking for n)

10000 = 20000*(1- 5/100)^n

now we find n from this

10000/20000 = (1- 5/100)^n

1/2 = (0.95)^n

now we need to use log to get n

log (1/2) = nlog(0.95)

now divide by log(0.95)

log (1/2) / log(0.95)  = 13.513

the time is 13 years and 6 months ( 13 and 1/2 years )

Answer 2

Step-by-step explanation:

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