Question

An initial amount of $40,000 increases by 8% per year. In how many years will the amount reach $60,000?​

Answer 1

Answer:

6.25 Years

Step-by-step explanation:

First, find 8% of 40,000 which is 3,200 which represents how much the initial amount increases per year.

Next, find out how much you need to increase by subtracting 40,000 from 60,000 which means you need 20,000 more dollars.

Next, divide how much money you need by how much it increases to see how many years it will take.

20,000 divided by 3,200 is 6.25

Answer 2

6.25 years
Find 1% of 40,000. 400
Multiply by 8. 3200
Divide by 20,000. 6.25