Principal Amount = P = $885
Amount Accumulated = A = $3500
Interest rate = r = 12% = 0.12
Compounding period in a year = n = 2
Time in years = t = ?
The formula for compounding is:
[tex]A=P(1+ \frac{r}{n})^{t*n} [/tex]
Using the values, we get:
[tex]3500=885(1+ \frac{0.12}{2})^{2*t} \\ \\
\frac{3500}{885} =(1.06)^{2t} \\ \\
log(\frac{3500}{885})=log((1.06)^{2t}) \\ \\
log(\frac{3500}{885})=2tlog(1.06) \\ \\
t= \frac{log(\frac{3500}{885})}{2log(1.06)} \\ \\ \\
t=11.80[/tex]
This means, it will take him 11.8 or approximately 12 years
