Question
A certain amount grows at an annual interest rate of 12%, compounded monthly. Which of the following equations can be solved to find the number of years, y, that it would take for the investment to increase by a factor of 64 ?
Answer: Option B
Answer: (b)Rate of interest = 12% p.a.= 1% per monthTime = 12y monthsA = P$(1 + R/100)^T$64 = 1$(1 + 1/100)^{12y}$64 = $1(1.01)^{12y}$
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Answer: (b)Rate of interest = 12% p.a.= 1% per monthTime = 12y monthsA = P$(1 + R/100)^T$64 = 1$(1 + 1/100)^{12y}$64 = $1(1.01)^{12y}$
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