If Siddiq invests $10,000 into a fund that earns 8% interest compounded annually, how long will it take for his investment to grow into $100,000?

About 25 years

About 30 years

About 40 years

About 35 years

About 30 years

Step-by-step explanation:

We would apply the formula for determining compound interest which is expressed as

A = P(1+r/n)^nt

Where

A = total amount in the account at the end of t years

r represents the interest rate.

n represents the periodic interval at which it was compounded.

P represents the principal or initial amount deposited

From the information given,

P = 10000

r = 8% = 8/100 = 0.08

n = 1 because it was compounded once in a year.

A = 100000

Therefore,

100000 = 10000(1+0.08/1)^1 × t

100000/10000 = (1.08)^t

10 = (1.08)^t

Taking log to base 10 of both sides, it becomes

Log 10 = log 1.08^t

1 = t × log 1.08 = 0.03342t

t = 1/0.03342

t = 29.9

Approximately 30 years

add all the numbers and check the ones place.

the answer is 486. as the ones place is more than 4, the estimation will be the next 10 ie, 490