Jane has P200,000 to invest today at 9% compounded annually to pay a debt of P562,530. How many years will it take her to accumulate enough to liquidate the debt?
Share
Jane has P200,000 to invest today at 9% compounded annually to pay a debt of P562,530. How many years will it take her to accumulate enough to liquidate the debt?
Sign Up to our social questions and Answers Engine to ask questions, answer people’s questions, and connect with other people.
Login to our social questions & Answers Engine to ask questions answer people’s questions & connect with other people.
Answer:
To calculate how many years it will take Jane to accumulate enough to liquidate her debt, we can use the formula for compound interest:
A = P(1 + r)^t
Where:
A = accumulated amount
P = principal (initial investment)
r = interest rate (expressed as a decimal)
t = number of years
In this case, we know the accumulated amount (A) needed is P562,530 and the principal amount is P200,000. We also know the interest rate is 9% compounded annually. We can use this information to solve for the number of years (t) it will take for the accumulated amount to reach P562,530.
P = A / (1 + r)^t
200,000 = 562,530 / (1 + 0.09)^t
Take the natural logarithm of both sides,
ln(200,000) = ln(562,530 / (1 + 0.09)^t)
Divide both sides by ln(1+0.09)
t = ln(200,000) / ln(1+0.09)
t = 11.82 years approximately
So, it will take around 11.82 years for Jane to accumulate enough to liquidate the debt.
It is worth noting that this calculation is an approximation and doesn't take into account other variables such as taxes, fees, inflation and other charges.
Step-by-step explanation:
pa brainliest po