Question

How many months does it take for $500 to double at a simple interest rate of 17%?

a) 4 months
b) 5 months
c) 6 months
d) 7 months

Answer 1

It takes 6 months for $500 to double at a simple interest rate of 17%.

Step-by-step explanation:

To find out how many months it takes for $500 to double at a simple interest rate of 17%, we can use the formula for simple interest: A = P(1 + rt), where A is the final amount, P is the principal (initial amount), r is the interest rate, and t is the time in years. In this case, we want the final amount to be double the principal, so A = 2P. Plugging in the values, we get 2P = P(1 + 0.17t).

Dividing both sides of the equation by P, we get 2 = 1 + 0.17t. Subtracting 1 from both sides, we get 1 = 0.17t. Dividing both sides by 0.17, we get t = 5.88. Since the question asks for the number of months, we can round up to the nearest whole number, which is 6.

Therefore, it takes 6 months for $500 to double at a simple interest rate of 17%.