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](https://tex.z-dn.net/?f=E%20%3D%20P%2AI%2At)
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:
.
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](https://tex.z-dn.net/?f=P%20%3D%201000%2C%20I%20%3D%200.07)
We want to find t when E = 1000, so
.
![E = P*I*t](https://tex.z-dn.net/?f=E%20%3D%20P%2AI%2At)
![1000 = 1000*0.07*t](https://tex.z-dn.net/?f=1000%20%3D%201000%2A0.07%2At)
![t = \frac{1}{0.07}](https://tex.z-dn.net/?f=t%20%3D%20%5Cfrac%7B1%7D%7B0.07%7D)
![t = 14.29](https://tex.z-dn.net/?f=t%20%3D%2014.29)
It will take 14.29 years for your bank balance to double from $1,000 to $2,000.