Answer:
63.36 years
Step-by-step explanation:
This is a compound interest problem and the following information has been provided;
Principal, P = 1200
Interest rate, r = 4%
Accumulated amount, A = 14400
We are required to determine the number of years for the principal to accumulate to the given amount. We use the compound interest formula;
[tex]A=P(1+r)^{n}[/tex]
We substitute the given values into the formula and solve for n;
[tex]14400=1200(1+\frac{4}{100})^{n}\\12=(1.04)^{n}\\[/tex]
The next step is to introduce natural logarithms;
[tex]ln12=nln(1.04)\\n=\frac{ln12}{ln1.04}\\n=63.36[/tex]
