3. An account earning 10% compound interest has $450,000 as the amount. It is known that the holder invested $180,000 at the beginning, he never added any other deposits and he did not withdraw any money from the account. How long has the account been running to accumulate the stated amount?

3. An account earning 10% compound interest has $450,000 as the amount. It is known that the holder invested $180,000 at the beginning, he never added any other deposits and he did not withdraw any money from the account. How long has the account been running to accumulate the stated amount?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 26Q: A customer was unable to pay the accounts receivable on time in the amount of $34,000. The customer...

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

Question

3. An account earning 10% compound interest has
$450,000 as the amount. It is known that the holder
invested $180,000 at the beginning, he never added any
other deposits and he did not withdraw any money from
the account. How long has the account been running to
accumulate the stated amount?

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