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vlada-n [284]
3 years ago
6

Joe deposits $50,000.00 in an account that earns 8.3% simple interest. About how many years will it take for his account balance

to earn $80,000.00 in interest?
Select the best answer from the choices provided.



About 5 years



About 10 years



About 20 years



About 25 years
Mathematics
2 answers:
mestny [16]3 years ago
7 0
The answer is about 5 years
marissa [1.9K]3 years ago
5 0
T = 7.23 years (either 5 or 10, you choose)

Equation:
t = (1/r)(A/P - 1)
Calculation:
First, converting R percent to r a decimal
r = R/100 = 8.3%/100 = 0.083 per year,
then, solving our equation

t = (1/0.083)((80000/50000) - 1) = 7.23
t = 7.23 years

The time required to get
a total amount, principal plus interest, of $ 80,000.00
from simple interest on a principal of $ 50,000.00
at an interest rate of 8.3% per year
is 7.23 years (about 7 years 3 months).
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