Answer:
14 years approx.
Step-by-step explanation:
Apply a variation of the compound interest formula:
A = P(1 + r)^t
Let A = 20000 = 12500(1 + 0.03)^t
We are to find t.
Dividing both sides of the above equation by 12500 yields:
1.6 = 1.03^t
Taking the logarithm of both sides, we get:
log 7500 = t log 1.035, which works out to:
log 1.6
-------------- = t = 13.66 years or 14 years approximately
log 1.03
