Question

Suppose P9,500 is invested at 6% interest compounded annually. Approximately how long will it take for the amount in the account to reach P12,000?

Answer 1

For interest compounded annually, you'll have the formula
\[A = P(1+r)^{n}\]
where A is the amount accumulated for n # of years
P is the principal amount
r is the interest rate
n is the number of years
now substitute the formula and solve for n