Question

How long does it take $450 to double at a simple interest rate of 100%? Express your answer in years.

a) 1
b) 0.5
c) 2
d) 4

Answer 1

It takes 1 year for $450 to double at a simple interest rate of 100% by using the simple interest formula I = P * r * t and solving for 't' when the interest equals the principal amount.

So option (A) is the correct answer.

Step-by-step explanation:

The question asks how long it takes for $450 to double at a simple interest rate of 100%. To solve this, we use the formula for simple interest, which is I = P * r * t, where I is the interest, P is the principal amount, r is the rate, and t is the time in years.

If the principal amount is to double, then the interest I will be equal to the principal P, which in this case is $450. With an interest rate of 100% (or 1 as a decimal), we have:

450 = 450 * 1 * t

Dividing both sides by 450 gives us:

t = 1

Thus, it takes 1 year for $450 to double at a simple interest rate of 100%. The correct answer is option (a) 1 year.