A loan of $48,000 is made at 7% interest, compounded annually. After how many years will the amount due reach $121,000 or more?

Compound interest formulaAccumulated sum = P (1+r) ^twhere P=present valuer=interest per periodt=number of periods

Given

P=48000

i=7% per year

accumulated sum = 121

Need to find t

Apply compound interest formula

121000=48000 (1.07) ^n

Divide by 48000, and take log on both sides

n*log (1.07) = log (121000/48000)

n=log (121000/48000) / log (1.07)

=13.666 years

Ans. it will take 13.7 years the initial deposit will reach 121000