Question

Calculate the time necessary to achieve the investment goal. Give your answer to the nearest day. Use a 365-day year. $2,320 at 9% simple interest; deposit $1,600

Answer 1

Answer:

5yrs or 1825 days

Step-by-step explanation:

Given the total amount of the investment after n-days at 9% is $2,320 and the principal amount invested is $1,600

-Let P be the principal amount, A be the total amount of the investment.

-We calculate the number of days using simple interest formula.

#Calculate the total interest earned on the investment:

$I=A-P, \\\\I=2320-1600\\\\=720$

Simple interest is calculated using the formula:

$I=PRT, T=time, R=interest \ rate , P= Prncipal, I=720\\\\720=1600\times \frac{9}{100}\times T\\\\\frac{720}{144}=T\\\\T=5\ years=5\times 365\ days= 1825\ days$

Hence, it takes 1,825 days to achieve your investment goals