Principal interest months

How many months will it take for a principal of 5,000 euros to earn 350 euros in interest at 5% p.a.?

Final Answer:

n =  17

Step-by-step explanation:

a=5000 eur q=1+5/100/12=240241=124011.0042 b=a+350=5000+350=5350 eur  S=b/a=5350/5000=100107=11007=1.07 S = qn  n ln q = ln S n0=ln(S)/lnq=ln1.07/ln1.004216.2719  n=n0=16.2719=17   Verifying Solution:  S2=qn=1.0042171.0732



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