Answer:
It will take 30.10 year
Explanation:
We have given initial investment $500000
Future value = $ 1 million = $1000000
Rate of interest r = 1.79 %
We have to find the time taken to reach the amount $1000000
We know that future value is equal to [tex]A=P(!+\frac{r}{100})^n[/tex]
[tex]1000000=500000(!+\frac{1.79}{100})^n[/tex]
[tex]2=(1.0179)^n[/tex]
Taking log both side
[tex]log2=nlog1.0179[/tex]
n×0.0077 = 0.3010
n = 39.09 year
Now in second case rate of interest
r = 2.34 %
So [tex]1000000=500000(1+\frac{2.34}{100})^n[/tex]
[tex]2=(1+\frac{2.34}{100})^n[/tex]
[tex]2=1.0234^n[/tex]
taking log both side
log 2 = n log 1.0234
n×0.01 = 0.3010
n = 30.10 year
