Question

You plan to place your savings into a high-yield account at your company's Employee Credit Union. How long will it take to double your money at 5% per year simple interest?

Answer 1

At a 5% simple interest rate, it will take 20 years for your savings to double in the company's Employee Credit Union account.

Step-by-step explanation:

To determine how long it will take to double your money at 5% per year with simple interest, we can use the formula for simple interest: I = PRT, where I is the interest earned, P is the principal amount (initial amount of money), R is the annual interest rate (in decimal form), and T is the time in years. To double your money, the interest earned (I) must be equal to the principal amount (P).

Setting I equal to P gives us P = P * 0.05 * T. Cancelling out P from both sides, we get 1 = 0.05 * T. To find T, we divide both sides by 0.05, resulting in T = 20 years.

So, at a 5% simple interest rate, it will take 20 years for your savings to double in your company's Employee Credit Union account.