Question

Brian invests £7500 into his bank account.
He receives 6% per year compound interest.
How many years will it take for Brian to have more than £10000?

Answer 1

Explicație pas cu pas:

P = 7500

n = 1

R = 6% => r = 0,06

A > 10000

t = ?

$A = P { \bigg(1 + \dfrac{r}{n} \bigg)}^{nt}$

$7500 { \bigg(1 + \dfrac{0.06}{1} \bigg)}^{(1)t} > 10000$

${ \bigg(1.06\bigg)}^{t} > \dfrac{4}{3} \iff { \bigg(\dfrac{53}{50}\bigg)}^{t} > \dfrac{4}{3}$

$\implies t \geqslant 5$

=> 5 years