Question

Tran invests $15,000 in a savings account that pays 4% simple interest. About how many years will it take for the account to double at this interest rate?

Answer 1

Explanation:For simple interest, we can make an equation.

Since we know that it will be 4 percent of 15,000, we need to find 4 percent of 15,000.

15,000×.04= 600

So 600 will be the amount Tran will receive every year.

15,000+600x=y

X is the amount of years and Y will be the total amount. The total amount we are looking at is double the starting value. 15,000 doubled is 30,000.

15,000+600x=30,000

We need to solve the equation by subtracting 15,000 from each side first.

600x=15,000

Now, let's divide 15,000 by 600.

15,000÷600=25

It will take 25 years for the account to double.