Question

Card was bought for 5 dollars. It's has appreciated 5% each year. When will the card be worth 25 dollars?

Answer 1

32 years

Explanation:

Given data

Principal= $5

Rate= 5%

FInal amount= $25

Time=???

Applying the compound interest formula for time

t= ln(A/P)/r

t= ln(25/5)/0.05

t= ln(5)/0.05

t= 1.60/0.05

t= 35 years

Hence the time is 32 years