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A man invests $ 16800 in savings plan that pays simple interest at a rate of 5% per annum. Find the Tim’s taken for his investment to grow to $18900

Sagot :

Answer:

2.5 years

Step-by-step explanation:

The given amount invested, which is the principal, P = $16,800

The simple interest rate, R = 5% per annum

The intended total value of the investment, A = $18,900

The simple interest on the principal, I = A - P

∴ I = $18,900 - $16,800 = $2,100

The formula for the simple interest, I, is given as follows;

[tex]I = \dfrac{P \times R \times T}{100}[/tex]

Therefore, we have;

[tex]T = \dfrac{I \times 100}{P \times R}[/tex]

Plugging in the values, gives;

[tex]T = \dfrac{2,100 \times 100}{16,800 \times 5} =2.5[/tex]

The time it will take the investment to grow to $18,900 is T = 2.5 years

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