Answer:
6 years is the correct answer.
Step-by-step explanation:
Given that
Principal, P = £8000
Rate of interest, R = 3% compounding annually
Amount, A > £9500
To find: Time, T = ?
We know that formula for Amount when interest in compounding:
[tex]A = P \times (1+\dfrac{R}{100})^T[/tex]
Putting all the values:
[tex]A = 8000 \times (1+\dfrac{3}{100})^T[/tex]
As per question statement, A > £9500
[tex]\Rightarrow 8000 \times (1+\dfrac{3}{100})^T > 9500\\\Rightarrow (1+0.03)^T > \dfrac{9500}{8000}\\\Rightarrow (1.03)^T > 1.19[/tex]
Putting values of T, we find that at T = 6
[tex]1.03^6 = 1.194 > 1.19[/tex]
[tex]\therefore[/tex] Correct answer is T = 6 years
In 6 years, the amount will be more than £9500.
