Answer:
Number of year = 17 year 4 month (Approx.)
Step-by-step explanation:
Given:
Current amount = $500
Future amount = 2 x 500 = $1,000
Rate of interest = 4%
Find:
Number of year
Computation:
Rate [Monthly] = 4% / 12 = 0.00333
Total time = 12 x n = 12n
A = P[1+r]¹²ⁿ
1000 = 500[1+0.003333]¹²ⁿ
2 = [1+0.003333]¹²ⁿ
2 = [1.003333]¹²ⁿ
Number of year = 17.358
Number of year = 17 year 4 month (Approx.)
