Question

How long will it take $5,000 to double in an account that pays 1.6% simple interest?

Answer 1

Answer:

43.667 years

Step-by-step explanation:

Simple Interest Rate Formula: A = P(1 + r)ⁿ

Step 1: Define variables

A = 10,000

P = 5,000

r = 0.016

n = unknown

Step 2: Substitute variables

10,000 = 5,000(1 + 0.016)ⁿ

Step 3: Solve for n time

2 = (1.016)ⁿ

$\log_{1.016}2$

43.667 years