Question

How long will it take 5000 to double in an account that pays 5.6% simple interest

Answer 1

To find out how long it takes for $5000 to double with a simple interest rate of 5.6%, we use the formula Interest = Principal × rate × time. Solving for time, we get time = $5000 / ($5000 × 0.056), which equals approximately 17.86 years.

Step-by-step explanation:

To calculate how long it will take for an initial amount of $5000 to double at a simple interest rate of 5.6%, we can use the formula for simple interest given by:

Interest = Principal × rate × time.

The question asks for the time it will take for the investment to double. This means the interest earned will be equal to the principal amount, which is $5000. Therefore, we can set up the equation: $5000 = $5000 × 0.056 × time.

Now, we can solve for 'time':

time = $5000 / ($5000 × 0.056) = 1/0.056 ≈ 17.857 years.

So, it will take approximately 17.86 years for $5000 to double with an annual simple interest rate of 5.6%.

Answer 2

so... doubling 5000 is just 10,000, thus


`\bf \qquad \textit{Simple Interest Earned Amount}\\\\ A=P(1+rt)\qquad \begin{cases} A=\textit{accumulated amount}\to &\$10,000\\ P=\textit{original amount deposited}\to& \$5,000\\ r=rate\to 5.6\%\to (5.6)/(100)\to &0.056\\ t=years \end{cases} \\\\\\ 10000=5000(1+0.056t)\implies \cfrac{10000}{5000}=1+0.056t \\\\\\ 2=1+0.056t\implies 1=0.056t\implies \cfrac{1}{0.056}=t`