posted by Hanu
How to solve this problem by using logarithm:
David inherits $10000 and invests in a Guaranteed Investment Certificate (GIC) that earns 6%, compounded semi-annually. How long will it take for the GIC to be worth $11000.
10000(1.03)^n = 11000 , where n is half=years
1.03^n = 1.1
n log 1.03 = log 1.1
n = log 1.1/log 1.03 = 3.224 half years
it will take 1.612 years or about 1 1/2 years