Question

If I invest AED 50,000 at 10.5% today, how long will it take to reach AED 1,000,000? (round to whole number, no decimal) Only type in a number, no comma or special symbol, don't write the word "years" Answer:

Answer 1

Future value =Present value (1+i)^n

1,000,000 = 50,000 (1+.105)^n

1000000/50000 = (1.105)^n

20 = (1.105)^n

Taking log both sides

log 20 = log (1.105)^n

log 20 = n log 1.105                          [log m^n = n log m]

1.30103= n (.04336)

n= 1.30103 /.04336

= 30 years rounded

#Find log values from log table or using online calculator .