Final answer:
It takes 9 years for a $5000 investment at an annual simple interest rate of 7% to grow to $8150, using the formula t = Interest / (Principal × rate).
Step-by-step explanation:
To calculate how long it takes for $5000 invested at 7% annual simple interest to grow to $8150, you can use the simple interest formula: Interest = Principal × rate × time. In this case, interest is the difference between the future value and the original principal, which is $8150 - $5000 = $3150. The rate is given as 7%, or 0.07 as a decimal. To find the time (t), rearrange the formula to t = Interest / (Principal × rate).
Using the values: t = $3150 / ($5000 × 0.07) = $3150 / $350 = 9 years.
Therefore, it takes 9 years for a $5000 investment at 7% annual simple interest to grow to $8150.