Question

3200 dollars is placed in an account with an annual interest rate of 6.5%. To the nearest year, how long will it take for the account value to reach 15300 dollars?

Answer 1

4 yrs

Step-by-step explanation:

Formulae for simple interest is;

A= P (1 + rt)                Whereby;

   A = Total Accrued Amount (principal + interest)

   P = Principal Amount

   I = Interest Amount

   r = Rate of Interest per year in decimal; r = R/100

   R = Rate of Interest per year as a percent; R = r * 100

   t = Time Period involved in months or years

15300 = 3200 (1 + 106.5/100 *t)

15300/3200 = 1 + 1.065t

4.78125 – 1 = 1.065t

3.78125 = 1.065t

3.78125/1.065 = t

3.55 = t

Rounded off to the nearest whole number;

= 4