Logarithm-10

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$ 1500 is invested at 4.6% per annum, interest being compounded semiannually.

Calculate the amount at the end of 10 years.


Solution: Here P = 1500; r = 2.3% per conversion period; n = 20

Then A = 1500 (1 + 0.023)20

Taking log on both sides,

log A = log 1500 + 20 log 1.023

= 3.1761 + 20 (0.0098) = 3.3721

A = antilog 3.3721

= 2356 (approximately)

Therefore, amount in 10 years = $ 2356

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