Answered

Welcome to Westonci.ca, your go-to destination for finding answers to all your questions. Join our expert community today! Explore thousands of questions and answers from a knowledgeable community of experts on our user-friendly platform. Connect with a community of professionals ready to help you find accurate solutions to your questions quickly and efficiently.

How long does it take $500 to double at a simple interest rate of 24%?

Sagot :

semsee45

Answer:

4 years and 2 months

Step-by-step explanation:

Simple interest formula

A = P(1 + rt)

where:

  • A = final amount
  • P = principal amount
  • r = interest rate (in decimal form)
  • t = time (in years)

Given:

  • A = $500 × 2 = $1,000
  • P = $500
  • r = 24% = 0.24

Substitute the given values into the formula and solve for t:

[tex]\implies \sf 1000 = 500(1 + 0.24t)[/tex]

[tex]\implies \sf \dfrac{1000}{500}=(1 + 0.24t)[/tex]

[tex]\implies \sf 2=1 + 0.24t[/tex]

[tex]\implies \sf 1 = 0.24t[/tex]

[tex]\implies \sf t=\dfrac{1}{0.24}[/tex]

[tex]\implies \sf t=4 \frac{1}{6} \:years[/tex]

[tex]\implies \sf t=4\:years\:2\:months[/tex]

Therefore, it takes 4 years and 2 months for the initial investment of $500 to double at a simple interested rate of 24%.

We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.