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Jerry Stevens wants to know how long it will take 1,100 to amount to 1,750 at a simple interest rate of 8%. Could you help Jerry? Round time in years to nearest tenth.

2 Answers

5 votes

Final answer:

To determine how long it will take for $1,100 to grow to $1,750 at a simple interest rate of 8%, the simple interest formula is applied and it is found that it will take approximately 7.4 years when rounded to the nearest tenth.

Step-by-step explanation:

The question asks how long it will take for an amount of $1,100 to grow to $1,750 at a simple interest rate of 8%. To find the amount of time, we can use the simple interest formula, which is:

Interest = Principal × Rate × Time

We know the following:


  • Principal (P) = $1,100

  • Rate (R) = 8% or 0.08 as a decimal

  • Interest (I) = $1,750 - $1,100 = $650

Substituting these values into the formula and solving for Time (T), we have:

T = I / (P × R)

T = $650 / ($1,100 × 0.08)

T = $650 / $88

T = 7.386

After calculating, we round the time to the nearest tenth of a year, yielding:

7.4 years

Therefore, it will take approximately 7.4 years for $1,100 to grow to $1,750 at a simple interest rate of 8%.

User Giel
by
6.4k points
3 votes
Interest per year
1100 * (8/100)
88

Need interest
1750 - 1100
650

Take time to reach that amount
650 / 88
7.386 years
User David Limkys
by
8.0k points