Question

If the interest rate is 7%, how many years will it take for your bank balance to double from $1,000 to $2,000?Enter the following data into your calculator:

Answer 1

Answer:

It will take 14.29 years for your bank balance to double from $1,000 to $2,000.

Step-by-step explanation:

This is a simple interest problem.

The simple interest formula is given by:

$E = P*I*t$

In which E are the earnings, P is the principal(the initial amount of money), I is the interest rate(yearly, as a decimal) and t is the time.

After t years, the total amount of money is:

$T = E + P$.

If the interest rate is 7%, how many years will it take for your bank balance to double from $1,000 to $2,000?

We have that $P = 1000, I = 0.07$

We want to find t when E = 1000, so $T = P + E = 2000$.

$E = P*I*t$

$1000 = 1000*0.07*t$

$t = \frac{1}{0.07}$

$t = 14.29$

It will take 14.29 years for your bank balance to double from $1,000 to $2,000.