Question

If you invested $250 at 16% interest, how much will you have after 18 years?

(hint: how many years will it take to double? This problem will take more than one step.)

Answer 1

Explanation:

The formula for simple interest is expressed as

I = PRT/100

Where

I represent the interest

P represents the principal or amount invested

R represents interest rate on the principal.

T represents time in years.

From the information provided,

P = $250

R = 16%

T = 18 years

Therefore

I = (250 × 16 × 18)/100 = $720

Total amount after 18 years would be 250 + 720 = $970