Given the Initial principal and interest rate, the time taken for the value of the investment to reach $20,000 is 14.1 Years.
An Interest is simply the amount of money a lender or financial institution receives for lending out money or pays for receiving money.
The formular for calculating compound interest is expressed as;
A = P(1 + r/n)^(n*t)
Where A is final amount, P is initial principal balance, r is interest rate, n is number of times interest applied per time period and t is number of time periods elapsed.
Given the data in the question;
A = P(1 + r/n)^(n*t)
We make t the subject of the formula
t = In(A/P) / n[In(1 + r/n)]
t = In(20000/8000) / 365[In( 1 + 0.065/365 )]
t = In(2.5) / 365[In( 1 + 1.78×10⁻⁴ )]
t = In(2.5) / 365[In( 1.000178 )]
t = In(2.5) / 365[In( 1.000178 )]
t = 0.91629 / ( 365 × 0.00017798 )
t = 14.1 years
Given the Initial principal and interest rate, the time taken for the value of the investment to reach $20,000 is 14.1 Years.
Learn more about compound interest here: brainly.com/question/27128740
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