Question

Michelle wants to make a long-term investment. She wants to triple an initial investment of

$2,000. If she invests at a simple interest rate of 12% per year, approximately how long will it
take her principal to triple?

Answer 1

It will take approximately 16.67 years for Michelle's principal to triple at a simple interest rate of 12% per year.

Step-by-step explanation:

To calculate the time it will take for Michelle's principal to triple at a simple interest rate of 12% per year, we can use the formula for simple interest:

Amount = Principal + (Principal * Rate * Time)

Since Michelle wants to triple her initial investment of $2,000, the amount after time t will be $6,000. Plugging in the values into the formula, we get:

$6,000 = $2,000 + ($2,000 * 0.12 * Time)

Simplifying this equation, we get:

Time = ($6,000 - $2,000) / ($2,000 * 0.12)

Time = 4 / 0.24

Time = 16.67 years

Therefore, it will take approximately 16.67 years for Michelle's principal to triple at a simple interest rate of 12% per year.

Answer 2

It will take approximately 17 years

Step-by-step explanation:

Let the initial investment be x

The investment plus the principal yields 3x

The interest is thus 3x-x = 2x

Formula for simple interest is;

I = PRT/100

R is rate = 12%

T is time = ?

x =$2,000 which is the principal

2x = x * 12 * T/100

2 = 12t/100

12t = 200

t = 200/12

t = 16.67 which is approximately 17 years