Answer:
=21.29%(Approx).
Step-by-step explanation:
We use the formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
a.
468,000=136,000*(1.08)^n
(468,000/136,000)=(1.08)^n
Taking log on both sides;
log (468,000/136,000)=n*log 1.08
n=log (468,000/136,000)/log 1.08
=16.06 years(Approx).
b.
475,000=10,000*(1+r/100)^20
(475,000/10,000)^(1/20)=(1+r/100)
(1+r/100)=1.2129
r=1.2129-1
=21.29%(Approx).
