Answer:
Time taken (n) = 23.4 years
Explanation:
Given:
Present value (P) = P
SO,
Future value (A) = 2P
Interest rate (r) = 3 % = 0.03
Find:
Time taken (n)
Computation:
[tex]A = p (1+r)^n\\\\ 2P = P(1+0.03)^n \\\\ 2 = (1.03)^n \\\\ n = 23.4 \ years[/tex]
Time taken (n) = 23.4 years
Given values:
Interest rate,
= 0.03
Let,
The computation will be:
→ [tex]A = p(1+r)^n[/tex]
By substituting the values,
[tex]2P = P(1+0.03)^n[/tex]
[tex]2 = (1.03)^n[/tex]
[tex]n = 23.4 \ years[/tex]
Thus the above answer is correct.
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