The time for $1000 to become $1300 at a rate if 5% is (d) 6 years
Calculating the time for $1000 to become $1300
From the question, we have the following parameters that can be used in our computation:
Amount = $1300
Principal = $1000
Rate = 5%
The formula for amount is calculated using
Amount = P(1 + RT)
Where
P = Principal
R = Rate
T = Time
Substitute the known values into the equation
1000(1 + 5% * T) = 1300
So, we have
(1 + 5% * T) = 1.3
Subtract 1 from both sides
5% * T = 0.3
So, we have
T = 0.3/0.05
Evaluate
T = 6
Hence, the time taken is 6 years
Question
Calculate the time t for $1000 to become 1300 at a rate of 5%
9 years
3 years
10 years
6 years