Question

How many years will it take for 2000 to double at a simple interest rate of 8%? explain how you found your answer

Answer 1

A = P(1+RT)
A (Future) = 2000(2) = 4000
P (Principal) = 2000
R (Rate) = 8% =.08
T (Time) = Unknown

Create the equation:
4000 = 2000(1+.08t)

Distribute the 2000:
4000 = 2000 + 2000(.08t)

Multiply the 2000(.08t):
4000 = 2000 + 160t

Subtract the 2000 from both sides:
2000 = 160t

Divide by 160:
12.5

Answer:
It will take 12.5 years (12 years and 6 months) to double the 2000 to double.