Question

How long will it take $500 to double at a simple interest rate of 5%? Explain how you found your

answer.

Answer 1

20

Explanation:

Use A=P(1+rt). First, A would be the final value. P would be the principal amount, r is the rate, and t would be the time. So to solve this:

1000= 500(1+.05t)

1000= 500 + 25t

500 = 25t

t = 20