Question

You deposit 5000 in an account that earns 5% simple interest.How long will it be befor the total amount is 6000

Answer 1

Answer:

$t=4\ years$

Step-by-step explanation:

we know that

The simple interest formula is equal to

$A=P(1+rt)$

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest  

t is Number of Time Periods

in this problem we have

$t=?\ years\\ P=\ 5,000\\ A=\ 6,000\\r=5\%=5/100=0.05$

substitute in the formula above

$6,000=5,000(1+0.05t)$

solve for t

$1.2=(1+0.05t)$

$0.05t=1.2-1$

$0.05t=0.2$

$t=4\ years$