Question

If $3,840 is invested in an account at 5% annual simple interest, how long will it take theaccount balance to grow to $4,800?

Answer 1

The interes is 5%

The initial capital is 3840.

The ending capital is 4800.

If it is only simple interest, we can calculate this as:

`\begin{gathered} C_f=C_0+n\cdot i\cdot C_0 \\ n=(C_f-C_0)/(i\cdot C_0)=(4800-3840)/(0.05\cdot3840)=(960)/(192)=5 \end{gathered}`

Exactly 5 years, if the interest is not compound.