Answer:t = 14 years
Step-by-step explanation:
We would apply the formula for determining compound interest which is expressed as
A = P(1+r/n)^nt
Where
A = total value of the loan at the end of t years
r represents the interest rate.
n represents the periodic interval at which it was compounded.
P represents the principal or initial amount borrowed
From the information given,
A = 17000
P = 11000
r = 3.24% = 3.24/100 = 0.0324
n = 1 because it was one in a year.
Therefore,.
17000 = 11000(1+0.0324/1)^1× t
Dividing through by 11000, it becomes
17000/11000 = 1.0324^t
1.54 = 1.0324^t
Taking log of both sides, it becomes
Log 1.54 = log 1.0324^t
0.187 = tlog 1.0324
0.187 = 0.0138t
t = 0.187/0.0138
,t = 14 years
