Question

If you invest $3,900 at a 7.83% simple annual interest rate, approximately how long will it take for you to have a total of $10,000?

a.
12 years
b.
15 years
c.
20 years
d.
30 years

Answer 1

It's c 20 years hope this helps:)

Answer 2

we know that

The simple interest formula is equal to

`A=P(1+rt)`

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest

t is Number of Time Periods

in this problem we have

`t=?\ years\\ P=\$3,900\\ A=\$10,000\\r=0.0783`

substitute in the formula above

`10,000=3,900(1+0.0783t)`

Solve for t

`10,000/3,900=(1+0.0783t)`

`(10,000/3,900)-1=0.0783t`

`0.0783t=1.5641`

`t=1.5641/0.0783`

`t=19.98\ years`

therefore

the answer is the option C

`20\ years`