Question

Brayden saves $1,500 at a yearly simple interest rate of 2.5%. How many years

Answer 1

Answer:

40 years.

Step-by-step explanation:

The simple interest formula is given by:

$E = P*I*t$

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

Brayden saves $1,500 at a yearly simple interest rate of 2.5%.

This means that $P = 1500, I = 0.025$

How many years does it take for the amount he has saved to be double the original amount?

This will happen when the earned money is the principal, that is, E = 1500. So

$E = P*I*t$

$1500 = 1500*(0.025)*t$

$t = \frac{1}{0.025}$

$t = 40$

40 years.