8.

Given:1 +
A = 50000
P = 15000
R = 12.5%

Required:
T=?
SOLUTION

nt
r
A = P 1+( )
t

.125 12t
50000 = 15000(1+ )
12
50000 = 15000 (1.010416667)12t
3.3333 = (1.010416666)12.t
(1.010416666)12.t = 3.3333
12t log 1.0104166667 = log 3.3333
log 3.3333
12t =
log 1.0104166667
0.5228744023
12t =
0.004493375
12t = 116.3656276852
t = 9.6971365404
number of years = 9
number of months = 8 months
number of days = 11 days
10.Given
30000 t = 2 years
15000 t = 4 years
45000 I = 6%
Solution
A = Pert
= 30000(2.7182)(0.06)(2)
= 30000(2.7182)0.12
= (30000)(1.12493)
= 33747.90

A = 15000(2.7182)(0.06)(4)
= (15000 )(1.27124)
= 19068.60
A = 33747.90 + 19068.60
= 52816.50
0.06 12t
52816.50 = 45000(1 + )
12
52816.50 = 45000(1.005)12t
1.1737 = (1.005)12t
log 1.1737 = 12t log 1.005
log 1.1737
12t =
log 1.005

0.69557
12t = 0.00216
¿
¿
12t = 322.023
t = 26.84 years
5. Given
A = 70000
P = 50000
R = 5.25% QUARTERLY
t=?

SOLUTION
r nt
A = P(1 + )
4
0.0525 4t
70000 = 50000(1 + ¿
4
70000 = 50000(1 + 0.13125)4t
1.4 = 1.131254t
4t log 1.13145 = log 1.4
log 1.4
4t =
log 1.13145
0.146128
4t =
0.053635
4t = 2.72337
t = 0.681 years
the child is 8 years old