Question

A man invests $16 800 in a saving plan that pays simple interest at a rate of 5%. Find the time taken for his investment to grow to $18 900.
Please explain

Answer 1

Answer:

2.5 years

Step-by-step explanation:

Given

Investment P = $16800

Interest rate r = 5% = 0.05

Final amount A = $18900

Time t = ?

Use the formula

A = P(1 + rt), where A - final amount, P - investment, r- interest rate, t- time

Substitute the given numbers and solve for t:

18900 = 16800( 1 + 0.05t)

1 + 0.05t = 18900/16800

1 + 0.05t  = 1.125

0,05t = 0.125

t = 0.125/0.05

t = 2.5 years

Step-by-step explanation:

Answer 2

Answer:

• 2.5 years

Step-by-step explanation:

Given

• Investment P = $16800
• Interest rate r = 5% = 0.05
• Final amount A = $18900
• Time t = ?

Use the formula

• A = P(1 + rt), where A - final amount, P - investment, r- interest rate, t- time

Substitute the given numbers and solve for t:

• 18900 = 16800( 1 + 0.05t)
• 1 + 0.05t = 18900/16800
• 1 + 0.05t  = 1.125
• 0,05t = 0.125
• t = 0.125/0.05
• t = 2.5 years