Answer:
6.3 years
Step-by-step explanation:
Given
[tex]P = 22400[/tex] --- initial value
[tex]r = 12\%[/tex] -- rate
[tex]A = P(0.88)^t[/tex] --- function
Required
Find t when [tex]A = 10000[/tex]
We have: [tex]A = P(0.88)^t[/tex]
Substitute: [tex]A = 10000[/tex] and [tex]P = 22400[/tex]
[tex]10000 = 22400 * 0.88^t[/tex]
Divide both sides by 22400
[tex]0.4464 = 0.88^t[/tex]
Take log of both sides
[tex]\log(0.4464) = \log(0.88^t)[/tex]
Apply law of logarithm
[tex]\log(0.4464) = t\log(0.88)[/tex]
Solve for t
[tex]t = \frac{\log(0.4464)}{\log(0.88)}[/tex]
[tex]t = \frac{-0.3503}{-0.0555}[/tex]
[tex]t = 6.31[/tex]
[tex]t \approx 6.3[/tex]
