Answer:
it will take 23.97 year to become $75000 from $30000
Explanation:
We have given initial amount to be deposited = $30000
Rate of interest r = 3.9 %
Future value A = $75000
We have to find the time taken to reach the amount $75000 from $30000
We know that future value is equal to [tex]A=P(1+\frac{r}{100})^n[/tex], here A is future value P is initial amount to be deposited, r is rate of interest and n is time period
So [tex]75000=30000(1+\frac{3.9}{100})^n[/tex]
[tex]2.5=1.039^n[/tex]
Taking log both side
log 2.5 = n log 1.039
n×0.0166 = 0.3979
n = 23.97 year
So it will take 23.97 year to become $75000 from $30000
