Question

Sally put $500 in the bank, where it earns 1.5% simple interest each year. How many years until her money will triple?

Answer 1

It will take approximately 133.33 years for Sally's money to triple.

Step-by-step explanation:

To calculate how many years it will take for Sally's money to triple, we can use the formula:

Final Amount = Principal + (Principal * Rate * Time)

In this case, the final amount is 3 times the principal ($500), the rate is 1.5%, and the principal is $500. We can substitute these values into the formula and solve for time:

3 * $500 = $500 + ($500 * 0.015 * Time)

Simplifying the equation:

1500 = 500 + (7.5 * Time)

1000 = 7.5 * Time

Time = 1000 / 7.5

Time = 133.33 years

Therefore, it will take approximately 133.33 years for Sally's money to triple.