Answer:
18 years
Explanation:
The computation of the time period is shown below:
Given that
Present value = $4,000
Rate of interest = 5 years
N = 365 days
Future value = $10,000
Now as we know that
Future value = Present value × (1 + rate of interest)^number of years
Let us assume the number of years be t
$10,000 = $4,000 × (1 + 0.05 ÷ 365)^365 × t
2.5 = (1 + 0.05 ÷ 365)^365 × t
2.5 = 1.000136986^365 × t
Now take log on both the sides
log 2.5 = 365t × log 1.000136986
t = 1 ÷ 365[log 2.5 ÷ log 1.000136986]
= 18 years
