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Answer :
14 years.This gradual accumulation of interest results in Cha's investment crossing the PHP 10,000 mark after 14 years.
To determine the number of years it takes for Cha's investment to exceed PHP 10,000, we can use the compound interest formula: [tex]A = P(1 + r/n)^(nt),[/tex]where A is the future value, P is the principal amount, r is the interest rate, n is the number of times interest is compounded per year, and t is the number of years.
Given that Cha invested PHP 5000 at an interest rate of 6% per annum, we have P = 5000 and r = 0.06. Let's assume the interest is compounded annually (n = 1). We need to find the value of t when A exceeds PHP 10,000.
Using the formula, we have [tex]10,000 = 5000(1 + 0.06/1)^(1*t)[/tex]. By solving this equation, we find that t is approximately 14.07 years. Since we are looking for the number of complete years, it will take 14 years for Cha's investment to exceed PHP 10,000.
During these 14 years, the investment will grow exponentially due to the compounding effect. The interest is added to the principal each year, leading to higher interest earnings in subsequent years.
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