Answer
7 years
Step-by-step explanation
Given:
Principal, P = $10,000
Rate, R = 6.75%
Amount, A = $15,000
What to find:
The years will it take the investment to reach $15,000 in value.
Step-by-step solution:
You need to first calculate the total interest on the investment using;
Interest, I = Amount, A - Principal, P
Interest, I = $15,000 - $10,000
Interest, I = $5,000
The final step is to find the years it takes the investment to reach $15,000 in value using simple interest formula.
Putting the values of the parameters into the formula, we have;
Therefore, it will take 7 years for the investment to reach $15,000 in value.