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Budding entrepreneurs at "Your Business" were excited that their presentation at the SAIT annual entrepreneurial competition was voted the best by every judge. An angel investor in the audience was very impressed by your business plan and offered to help you start your business by offering you a loan at 4.353% compounded semi-annually.
After three years, your business had savings of $29,500 and your business used the entire amount to completely pay off the outstanding debt with the investor.
Problem 1: How long would it take for the debt to reach $40,000 if your business did not repay any amount throughout the term? Assume the same interest rate of 4.353% compounded semi-annually throughout this extended period. Make a equation using natural logarithms. Round the time up to the next month (use a round feature correctly). Use Excel to calculate and express the term in years and months. Cell reference all values, including 12 (months per year).
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