Question

Axel put $939.39 in a bank account paying 5.35% simple interest. How long will it take before his account has grown to $1,000? Give the answer in years. *

Answer 1

EXPLANATION

Let's see the facts:

Principal = P = $ 939.39

Interest rate = r = 5.35%

The simple interest equation will be:

I= Prt

I= Interest

P= Principal (Initial Value)

r= interest rate (in decimal form)

Replacing terms:

1,000= 939.39* 0.0535*t

Isolating t:

t= 1,000/(939.39*0.0535)

Multiplying:

t= 19.89 years

It will take almost 20 years ro reach $1,000.