Answer:
it will take 20.75 year to reach amount $20000
Explanation:
It is given that average worker in China makes $5000 per year
So principal amount P = $5000
It is given that wage are keeping up with a rate of 7%
So rate of interest r = 7 %
We have to find the time in which amount will become $20000 per year
We know that total amount is given by [tex]A=P(1+\frac{r}{100})^n[/tex], here n is time period and r is rate of interest
So [tex]20000=5000(1+\frac{7}{100})^n[/tex]
So [tex]4=1.07^n[/tex]
Taking log both side
[tex]log4=nlog1.07[/tex]
[tex]0.6020=n\times 0.029[/tex]
n = 20.75 year
So it will take 20.75 year to reach amount $20000
